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A Wandering Student 
in the Far East 

Digitized by the Internet Archive 
in 2013 

Picturesque Japan. 

A Wandering 
in the Far 





"He (Dr Johnson) talked with an uncommon animation of 
traveUing into distant countries ; that the mind was enlarged by- 
it, and that an acquisition of dignity of character was derived 
from it. He expressed a particular enthusiasm with respect to 
visiting the wall of China." — BoswelVs Life of Samuel Johnson. 



William Blackwood and Sons 
Edinburgh and London 






YUN-NAN FU . . . .39 

XXI. RAILWAY SCHEMES {continued) : British 

PROJECTS . . . .58 

XXII. TRADE ..... 90 




XXIV. OLD JAPAN . . . .149 











PICTURESQUE JAPAN . . . Frontispiece 






HANKOW LINE ..... 86 

PORTS OF ssOch'uan . . . . .104 



TOKYO ....... 124 









A STREET IN TOKYO ..... 202 










" When the Master went to "Wei, Jan Yu drove his carriage. The 
Master said : What an abundant population ! — Jan Yu said : Now 
that the people are so abundant, what is the next thing to be done ? 
— Enrich them, said Confucius. — And having enriched them, what 
then? — Teach them, was the reply." — Analects of Confucius. 

"When the Indian trail gets widened, graded, and bridged to a 
good road, there is a benefactor, there is a missionary, a pacificator, 
a wealth-bringer, a maker of markets, a vent for industry." 

— R. W. Emerson. 





A PERUSAL of the two preceding chapters will 
have made sufficiently clear the outstanding 
difference between the problems presented to 
the Government of India on the " North- West 
Frontier" and those arising on the '^North- 
East Frontier." Beyond the ramparts of the 
Western Himalaya and the Hindu Kush lie 
a congeries of states whose importance to Great 
Britain arises chiefly from the accident of their 
geographical position. Asiatic Turkey, Persia, 
Afghanistan, and Tibet occupy the position of 
pawns upon the Asian chess-board. Incapable 
of any movement of moment in themselves, 
they act as a screen nevertheless to the vital 
piece upon the board as represented by the 


Indian Empire. In the many problems which 
they present to British statesmanship, commerce 
plays a part of but secondary importance, being 
not infrequently employed as a means towards 
political ends. In other words, the ultimate 
aim of British statesmanship in these parts 
of Asia has been the maintenance and 
strengthening of a belt of neutral states, 
inhabited by friendly peoples, and ruled by 
potentates, friendly, it may be, but in any case 
innocuous in as far as their powers of aggression 
— should they ever feel moved towards any 
such exhibition — are not of such a kind as 
to cause a Power like Great Britain serious 
apprehension. In such a programme the 
acquisition of strategic posts of vantage and 
the creation of political prestige have neces- 
sarily taken precedence of a single-minded 
development of trade in lands offering the 
merchant, at the best, a poor and unattractive 
soil. This I have endeavoured to make clear 

In that part of Asia with which I am now 

^ See ' On the Outskirts of Empire in Asia,' pp. 19-23 
and ch. xxvi. 

china's attitude towards EUROPE. 5 

dealing these conditions are reversed. The 
vast network of mountains which run down 
from Tibet to Siam, quite apart from the es- 
sentially unaggressive character of the Chinese 
people, provides a sufficient guarantee against 
any serious violation of India's eastern frontier. 
Questions of defence fall into the background ; 
commerce stands out as the matter of para- 
mount importance, and the acquisition of 
political influence becomes desirable, not as 
an end in itself, but for the purpose of secur- 
ing the abolition of harassing restrictions upon 
British trade and a fair field for the play of 
British enterprise in growing markets. The 
expansion of trade in a countr}^ of vast areas 
demands, and will demand with increasing 
persistency, the improvement of communica- 
tions, and the question of the introduction 
into China of modern methods of transport — 
i.e., transport by railway and steamboat — is 
in its turn materially affected by the present 
reform movement in China, inspired as it is 
by the spirit expressed in the terms of the 
catch-cry of the Young China party, China 
for the Chinese." This attitude of China 


towards the foreigner has got to be recognised 
and understood, for it is at the present time, 
and will continue to be in the future, a deter- 
mining force in all intercourse between China 
and foreign nations. Unless this be realised, 
no question, whether of trade or of industrial 
enterprise, in China can be profitably discussed, 
and I make no apology, therefore, for tracing 
the history of the past decade, in so far, at 
any rate, as the growth of the new spirit of 
the Chinese is concerned. 

At the close of the nineteenth century 
Europe knew little of, and cared less for, 
the real feelings of the Chinese. Their 
prodigious pride — " pride of race, pride of 
intellect, pride of civilisation, pride of sup- 
remacy — in its massive and magnificent set- 
ting of blissful ignorance,"^ was heedlessly 
ignored. How often had 

"The East bowed low before the blast 
In patient deep disdain, 
To let the legions thunder past 
And — plunge in thought again " 1 

1 'These from the Land of Sinim'— Sir R. Hart, G.C.M.G. 



The Chinese were of the East— eastern. They 
subscribed, therefore, to the comfortable 
doctrine of Fatalism, and would accept with 
quiet resignation the ruling of the grim 
god whom men call Destiny. And with 
reckless levity continental Europe thought 
to play the part of destiny to four hun- 
dred millions of an alien race, and to despoil 
them of the land which had been theirs for 
upwards of four millenniums. 

No apology is intended here for '*the 
dreadful events " — to make use of the phrase- 
ology of one emotional writer — "fit to be 
printed with lurid letters of blood on pages 
of Cimmerian darkness," which apprised the 
astonished visionaries of Europe of their mis- 
take. It is not even disputed that nothing 
short of the actual seizures by Germany, 
France, and Kussia — and under pressure of 
events, England — would have sufficed to dis« 
turb the monumental apathy of the Peking 
mandarinate, and to awaken them to the 
necessity of facing a dawning era of 
change ; but it is asserted with profound 
conviction that for the day of tribulation 


in North China the Cabinets of Europe were 
themselves to blame, and that in the up- 
heaval of 1900 is to be read nothing more 
nor less than the inevitable sequence of 
cause and effect. 

The nineteenth century resounded with the 
cry of Europe to Asia — " Change and reform." 
To the twentieth it is given to lift the 
curtain on a new Far East, awakened to 
a new life by the noisy and insistent cry, 
backed by " the last argument of kings " — 
the roar of cannon and the persuasive patter 
of small -arm ammunition ; and it is in this 
connection that lies the lasting interest of 
the chain of events that led up to the 
drama of Peking during the summer of 

What was the situation when, in the open- 
ing year of the twentieth century, the advent 
of an intercalary eighth moon portended to 
the superstition - ridden Chinese calamity for 
the whole empire ? Truth demands the 
admission that it was one of sufficient 
provocation. The iron - handed martinet of 
Germany frowned defiance at the capital 



from the vantage-ground of territory newly 
torn from the live body of China; Man- 
churia writhed under the grinding heel of 
Eussia; France in the south grasped the 
territory and harbour of Kwong-chow-wan ; 
Great Britain held Kow-loon and Wei-hai- 
wei. The break up of China was openly 
spoken of by men in high places, and the 
crowning insult was added to a proud and 
conceited nation when Italy, whose interests 
in China were represented by 124 out of 
the 17,193 foreigners resident in the treaty 
ports, and 9 of the 933 foreign firms, put 
in an absurd and frivolous claim to a port 
in the province of Chekiang.^ 

^ The Chinese author of ' The Chinese Crisis from Within ' 
gives a translation of a letter written in May 1900 by the 
notorious Manchu generalissimo Yung-lu to Tung Fu-hsiang, 
who led the Chinese troops against the legations. The 
encouragement derived by the anti-foreign party from their 
success in refusing the demands of Italy is clearly shown in 
the following sentence which occurs in it : "I opposed the 
cession of Sanmun to Italy, and the latter dared not touch 
us. So I intend to greatly and widely display the ferocity 
of my soldiers, and prevent for ever the barbarians from 
frightening our people. The accursed race of barbarians 
are not numerous, and surely we can kill and expel them 
from our country." 


The breaking-point of Chinese complacency 
had at last been reached. The demand of 
the Italian Minister was politely but firmly 
refused, the passions of the people were 
roused by the circulation of maps in Chinese 
showing the various portions of the empire 
carved out by the Powers as future depend- 
encies, and over the scene crept a sinister 
shadow of impending change. 

Looking back over the chapter of Chinese 
history which began with the German occu- 
pation of Kiau Chau and closed with the 
siege of the legations at Peking, with all 
the advantages of time and distance to 
enable the attainment of a correctly adjusted 
focus, the signs and portents appear suffi- 
ciently well marked; and had it not been 
that the one cry to which those most 
nearly concerned ''had grown so accustomed 
as to mind it less than their own heart- 
beats, was this Chinese cry of Wolf!" the 
real direction in which the unwieldy Chinese 
colossus was drifting must surely have been 
perceived. The edicts issued by the Emperor 
during his brief and amazing attempt at 


reform were uniformly directed to increas- 
ing the capacity of his country to resist. 
In November 1897 Kiau Chau had been 
seized, and in January 1898 a ninety-nine 
years' lease reluctantly granted. In the same 
month it was declared by imperial rescript 
that — " we are beset on all sides by power- 
ful neighbours who craftily seek advantage 
from us, and who are trying to combine 
together in overpowering us " ; while sanc- 
tion was at the same time given to a 
memorial by Hsll Tung, praying that vol- 
unteers and militia corps of able-bodied men 
imbued with a spirit of loyalty and patriot- 
ism be formed— "to strengthen the defences 
of the Empire with a human bulwark of 
brave and loyal hearts," and that the 
regulars and militia levies from the interior 
regions be forthwith ordered to march to 
the sea-board for the purpose of adding to 
the local defences of each maritime port or 
city." ^ In March of the same year Russia 
extorted from China a twenty -five years' 
lease of Port Arthur, Talienwan, and their 

^ Imperial edict, January 17th, 1898. 


adjacent territories and waters, and in April 
Wei-hai-wei was leased for a similar period 
to Great Britain, and Kwong-chow-wan for 
ninety-nine years to France. The echo of 
these doings was not long in coming. " Let 
us ask what other country except our own 
is there that is labouring under such diffi- 
culties, because of being behind the times ? 
What will our condition be if we do not 
set about at once to drill and arm our 
armies after modern methods ? Does any 
one think that in our present condition he 
can really say with any truth that our men 
are as well drilled and well led as any 
foreign army ? Or that we can stand suc- 
cessfully against any one of them ? " ^ 

In September the Peking world, which 
had been gasping bewilderedly in a novel 
atmosphere of reform for the whole of a 
memorable summer, were forced to beat a 
hurried retreat to the normal by the dram- 
atic coup d'etat of her Majesty Tzu Hsi, 
resulting in the obliteration of the Emperor, 
the cold - blooded murder, without trial, of 

1 Imperial edict, June 11th, 1898. 

Dagoha at the Yellow Temple, Peking. 


six of the chief reformers, and the casting 
into the melting-pot of the elements of 
reform. Yet with the accession of the re- 
actionary junta to power one reform at least 
was steadfastly pursued — the reform best cal- 
culated to put a term to foreign aggression. 
Witness the imperial edict of November 
5th, 1898 — ''I, the Empress-Dowager, having 
at heart the welfare of my people and the 
permanence of the dynasty, am of opinion 
that every effort should be made to establish 
volunteer military organisations throughout 
the country. With trained volunteers in all 
the cities, towns, and villages, and the people 
accustomed to the use of arms and the drills 
and discipline of the regular army, the whole 
country can be turned into a great armed 
camp to fight for their homes should the 
exigencies of the moment call our people 
forth. We can then depend on ourselves 
for the safety of our homes and families." 

In November 1899 France swallowed yet 
one more slice of Chinese territory in the 
two islands commanding the entrance to her 
previous acquisition of Kwong-chow-wan, and 


a month later an imperial edict appeared in 
language which it should have been impossible 
to mistake — 

" The various Powers cast upon us looks of tiger- 
like voracity, hustling each other in their endeavours 
to be the first to seize upon our innermost terri- 
tories. . . . They fail to understand that there are 
certain things which the Empire can never assent 
to, and that, if hardly pressed, we have no alternative 
but to rely on the justice of our cause, the knowledge 
of which strengthens our resolves and steels us to 
present an united front against our aggressors. . . . 
It behoves, therefore, that our Viceroys, Governors, 
and Commanders-in-chief unite their forces and act 
together, without distinction of jurisdiction, so as 
to present a combined front to the enemy, exhorting 
and encouraging their officers and soldiers in person 
to fight for the preservation of their homes and native 
soil from the encroaching footsteps of the foreign 
aggressor." ^ 

The shadow had moved forward many degrees 
on the dial of inexorable fate. 

During the year 1899 a spirit of unrest 
stalked abroad throughout the dominions of 
the " Son of Heaven," and if the influences 
which now stirred the masses of China were 

^ Imperial edict, December 1899. 


largely anti - dynastic, was it not the effete 
Manchu bureaucracy that were responsible 
for recent foreign inroads into the ancient 
land of their inheritance ? Effete in all else, 
the Manchu caucus were still past masters of 
all the intricacies of Oriental diplomacy and 
intrigue, and little difficulty was experienced 
in diverting the rising tide of indignation 
from its channel of anti-dynasticism to the 
broad and easy course of anti-foreign agitation. 
So — "Death to the foreigner and uphold the 
dynasty " was the legend inscribed on the 
banners of the Boxers when the gathering 
clouds at length burst in the fateful summer 
of 1900. 

The project was ill - conceived and badly 
carried out, and in its denoument displayed 
a distraught and divided Government see- 
sawing painfully backwards and forwards on 
the horns of an insoluble dilemma. A malig- 
nant hatred of the foreigner, and a consequent 
secret desire to court the favour of, and to 
acquire popularity with, the seething rabble 
of malcontents whom they themselves had 
raised up, and who now, waving aloft the 


flag of patriotism, were rapidly assuming the 
alarming proportions and power of a veritable 
monster of Frankenstein, dragged them pain- 
fully in the direction of the forces of evil, 
while a wholesome dread of foreign power to 
deal vengeance obtruded its hateful presence 
and bade them hold aloof. Moreover, in the 
inner recesses of the council chamber was a 
house divided against itself. Some there 
were — and it is noteworthy that they were 
almost exclusively Chinese as opposed to 
Manchus — who knew well the danger of play- 
ing thus with fire, and who acted as a re- 
straining influence upon the party of reaction, 
who were obsessed with one single and insane 
idea, — the blotting out once and for all, by 
fair means or by foul, of the hateful presence 
of the foreigner. 

Thus while " yang-ren pih shah, yang-ren 
t ui huei ki shah " — " the foreigners must be 
killed ; even if the foreigners retire, they must 
still be killed," ^ — was the amiable message 

1 A copy of tliis telegram was confidentially handed to a 
missionary in Honan by a friendly native in a brigadier- 
general's yamen. See ' Martyred Missionaries,' p. 9. 


telegraphed all over China in June by the 
Empress-Dowager, in whose kindly and gentle 
nature Miss Carl sees " the very embodiment of 
the Eternal Feminine," two high officials, Hsti- 
ching - cheng and Ylian-ch'ang, took it upon 
themselves, to their everlasting honour, in 
despatching the order to the south, to alter 
the word shahy "to kill," into pao, protect." 
It is interesting to recall the fact that "the 
embodiment of the Eternal Feminine" there- 
upon proceeded to vindicate her Eternal 
Femininity by having the two officials sawn 

The situation, then, was one of sufficient 
difficulty for a weak and divided Government, 
and they did what was perhaps inevitable 
under the circumstances — they waited on 

There is little doubt that the bursting of 
the bomb was premature. Even those who 
regarded the Boxer movement in Shantung 
as "very significant," did not expect it "to 
become a danger before the autumn " ; while 
Monseigneur Favier, whose hand was on the 
pulse of the magnificent intelligence organism 



provided by the Koman Catholic mission, ex- 
pressed himself satisfied with the granting of 
his modest request for quarante ou cin- 
quante marins pour proteger nos personnes 
et nos hiensy The rapid development of the 
movement was " a genuine surprise." The 
Boxers, encouraged by the annihilation party 
in the Government, got early out of hand, 
while a severe drought in the metropolitan 
province threw hundreds, who would otherwise 
have been occupied in the peaceful cultivation 
of the soil, into the arms of the fomenters 
of discontent. The belief expressed by the 
British Minister at the time, that a few days' 
rain would do much to quiet the populace, 
is confirmed by eyewitnesses of the facts. 
Proclamations were scattered broadcast declar- 
ing that the foreigners were the cause of 
the drought, and "rain processions" were 
freely held to propitiate the wrath of the 
gods. The experiences of the many members 
of the China Inland Mission involved in the 
uprising are summed up by Mr Broomhall 
in these words : There had been a long 
season of drought, and the usual crops had 



failed. The people, instead of being busily 
engaged upon their farms, were idle, hungry, 
and discontented. They were face to face 
with a serious famine. Heaven must be dis- 
pleased, for if not, why was the rain with- 
held ? " 1 

It required little at such a time to persuade 
a superstitious people like the Chinese, whose 
minds are at all times dominated by an 
ineradicable belief in geomancy, that the 
foreigners were the cause of these calamities.^ 
Railways, telegraph lines, mining machinery, 
forced upon the country at the point of the 
bayonet by the sacrilegious foreigner, were 
disturbing the spiritual forces of the country 

1 ' Martyred Missionaries,' p. 19. 

2 The extraordinary and exasperating hold which geomancy 
has upon the Chinese mind is well known to every resident 
and most travellers in the country. Here is an illustration 
of its working given in ' Things Chinese ' (Dyer Ball) : 
" When it was proposed to construct a telegraph from Canton 
to Hong Kong, the ground of the opposition against it was as 
follows : Canton is ' the city of Eams ' or ' Sheep ' ; the mouth 
of the river is known as the ' Tiger's Mouth ' ; the district 
opposite Hong Kong is the 'Nine Dragons.' What more 
unfortunate combination could be found — a telegraph line 
to lead the sheep right into the tiger's mouth, and amongst 
the nine dragons ! !" 


and calling down the wrath of the gods. " The 
Chinese Government could not have chosen 
a time more suited to their purpose."^ The 
superstitious peasants, driven to distraction 
and eager to seize upon any straw that held 
out a promise of relief, tore down a railway 
station near Peking, and by a curious and 
unfortunate coincidence a torrential thunder- 
storm broke over the place a few hours later. 
The stars in their courses fought in the ranks 
of outrage and anarchy. **The cause of 
nationality may excite the educated revolu- 
tionist ; but the pinch of famine is required 
before the humble tiller of the soil can be 
enlisted in his thousands." The " combination 
of agrarian with national aspirations," which 
gave '*so sinister and terrible a complexion 
to Ireland in 1880,"^ hastened the crisis in 
China in 1900. Throughout the north dis- 
content and irritation seethed and bubbled ; 
the time was rife for avenging past humilia- 
tions by the extermination of the foreigner 
— yet the Government still held back. 

^ ' Martyred Missionaries,' p. 8. 

2 ' Life of Lord Randolph Churchill.' 


Ostensibly, at any rate, tlie rising was 
not accorded Government support : on the 
surface, at least, the Foreign Ministers were 
still the representatives of friendly Powers 
accredited to the Court of Peking. 

On June 17th the admirals of the allied 
fleets stormed and took the Taku forts. Here 
at last was a legitimate excuse for breaking 
ofi" relations, which was instantly seized upon 
by the party urging war and made the 
subject of a hurriedly drawn -up apologia. 
"Extreme kindness," it was declared, "has 
been shown the strangers from afar ; but 
these people know no gratitude, and increase 
their pressure. A despatch was sent calling 
upon us to deliver up the Taku forts, other- 
wise they would be taken by force. . . . With 
tears have we announced war in the ancestral 
shrines. . . . Those others [i.e., foreigners] rely 
on crafty schemes, our trust is in Heavens 
justice ; they depend on violence, we on 
humanity." At 4 p.m. on the 19th an ulti- 
matum was issued to the representatives of the 
Powers in Peking, and their departure within 
twenty-four hours demanded. Departure with 


their wives and families, and without trans- 
port, through a raging mob of armed fanatics, 
being obviously out of the question, the 
Ministers remained where they were, and at 
4 P.M. on the 20th the first bullet from an 
Imperial trooper s rifle imbedded itself in the 
British legation wall. There are places in 
the magnificent modern legation quarter where 
the curious may observe at the present day 
odd patches of perforated wall, land-marks 
of the past carefully preserved amid the polish 
and garnish of the new — lest we forget. 

Still the siege was not pressed vigorously 
home, — some restraining force still held the 
governing body back : weak and vacillating, 
they still waited on events. The key to a 
difficult and tangled situation lay in Tientsin. 
On June 10th a force of rather less than 
2000 men, under Admiral Seymour, had started 
from that city for Peking. At first all went 
well, but on the 18th, the day after the 
capture of the Taku forts, a sudden access 
of force was added to the Boxer ranks in 
the shape of Imperial troops, and the position 
of the column soon became so desperate, 


that it was only with the help of a relieving 
detachment from Tientsin that it struggled 
back to that city on the 26th. Thence- 
forward the attack on that place was pressed 
with a fierce determination ; the fate of 
Europe in China hung in the balance, and 
the turn of the scale rested with the gallant, 
sorely-tried band of men who were fighting 
desperately for life while the dog-days of 
June and July dragged slowly by. Those 
who were there, and who knew not from 
day to day what the morrow would bring 
forth, can paint in all the terrible colours 
of realism a vivid picture of the wearing 
struggle so nearly lost : to the onlooker, some- 
thing of the fierceness of the fight comes 
home with a perusal of the list of casualties, 
exceeding, as it did, in the course of a few 
short weeks the same grim catalogue for 
Ladysmith, Kimberley, and Mafeking combined 
during three years of war. 

Tientsin won through, and on August 4th 
a mixed force of 10,000 Japanese and an equal 
number of other troops — British, Americans, 
and Russians — started for Peking. With 


their triumphal procession to the capital, 
China's bout of midsummer madness was 
brought to a speedy close, and an inter- 
national conference assembled to brood over 
the results of upwards of half a century's 
endeavour to dragoon a protesting people 
into the comity of nations. 

The proceedings of the Powers subsequent 
to the relief provide much that is unpleasant 
reading. The gross brutality of the so-called 
Christian soldiery of continental Europe was 
scarcely calculated to inspire the Chinese 
people with either affection or respect, but 
rather to hand down to future generations 
a legacy of hate. Moreover, in the course 
of the discussions and councils by which it 
was sought to evolve order out of chaos, and 
to re-establish a working mechanism between 
conquerors and conquered, the schemes and 
jealousies of rival Powers became partially 
unveiled. The story of the steady progress 
of Kussia in the absorption of Manchuria I 
have told elsewhere. ^ It provided an object- 

^ 'On the Outskirts of Empire in Asia,' chaps, xxviii. 
and xxix. 


lesson which was not lost upon the rehab- 
ilitated dynasty and its advisers at Peking. 
As a remedy for foreign aggression, Boxerism 
had failed, and the years immediately succeed- 
ing the disaster of 1900 were remarkable chiefly 
for the steady advance, once again, of the 
party which sought salvation in national re- 
form. If progress at first was slow, the new 
spirit was none the less there, and as the 
sensational scenes of the great Far Eastern 
drama of 1904-5 were played out on the 
Manchurian stage, they added immeasurable 
momentum to the already rolling ball. The 
significance of the war — the triumph of the 
yellow race over the white — was not lost on 
the people who, after the protagonists, were 
most nearly concerned, and Japan victorious 
inevitably became the model for a reorganised 
China, destined in the future to repeat, if 
not to surpass, the vast achievements of the 
island empire. 

The precepts of Kang Yu Wei became the 
doctrine of a people : China became impreg- 
nated with a rapidly growing aspiration after 
national assertion. This is the key to each 


new move by China in her dealings with the 
outside world, and it is essential not to lose 
sight of the fact that it is the same spirit 
which rose phoenix -like from the ashes of 
Kagoshima to inspire the makers of new 
Japan, that provides the driving force behind 
the reform movement in China at the present 
time. In other words, the alpha and omega 
of Chinese reform are to be found in the 
expression " China for the Chinese," which 
provides an effective watchword for the ban- 
ners of the Young China party and an agree- 
able text for the copious outpourings of a 
newly born native press, round which the 
hitherto unknown phenomenon of a Chinese 
public opinion is rapidly being formed. 

It would, indeed, be difficult to lay too much 
stress upon the power of the press as an agency 
for the diffusion of the aspirations of the new 
school of thought in China. "No feature of 
modern China," declared Dr Morrison, at the 
dinner of the China Association held in London 
on November 5, 1907, " is more striking than 
the growth of the native press. I believe there 
are no fewer than 200 newspapers published 


in China. Every capital has its own daily 
press. Their leaders show steady development 
in political knowledge and insight." And side 
by side with the sudden birth and amazing 
expansion of a native press has grown an almost 
insatiable demand for Chinese translations of 
the literature of Europe and America. The 
scope of this new demand is immense, and 
ranges from educational handbooks on such 
subjects as history, political economy, or phil- 
ology, to modern fiction as represented by ' La 
Dame aux Camelias' and 'Sherlock Holmes.' 
It is reported that no fewer than 355,000 copies 
of a single text-book have been recently printed 
by the foremost Chinese publishing agency — the 
"Commercial Press," — and that 158,000 copies 
of another have been sold in the course of eigh- 
teen months. So far back as the year 1904 
there were said to be over 1100 different edu- 
cational works on sale in Shanghai, apart alto- 
gether from the works published by the 
missionary agencies. That the pandering, on 
this scale and in this manner, to the voracious 
appetite for knowledge with which China has 
suddenly been assailed will have far-reaching 


results, is patent to all ; what is not quite so 
obvious is the exact nature of the results which 
are likely to ensue. **To pass within the life 
of a generation from the Trimetrical Classic to 
John Stuart Mill, from the days of the Crusad- 
ers to the twentieth century, is a feat of mental 
and sociological gymnastics not devoid of dan- 
ger; the people which takes so great a leap 
risks failure, and failure means anarchy and 
chaos." ^ Yet no man may say that China is 
about to be involved in any such catastrophe. 
But if it is not possible to predict with any 
hope of success, it is at least safe to insist upon 
the wide diffusion of the influence wielded by 
the spirit of reform. 

The reader who has followed me in my 
journey from Shanghai to Bhamo will have 
arrived at some idea of the extent and 
reality of the movement. Let me sum up 
briefly some of the symptoms of change 
which were apparent in the interior of the 
country. In all directions I heard of organised 
rejoicings at the promise of a Constitution, 
or of keen resentment and discontent where 

1 The Shanghai correspondent of 'The Times.' 

china's attitude towards EUROPE. 29 

such intended expressions of public satis- 
faction had been quenched by officials of 
a reactionary type. I found the influence 
of the 10,000 Chinese students who during 
the summer of 1906 filled the seminaries of 
Japan already an appreciable force, and one 
which was being cast into the scale in favour 
of revolutionary change. No more striking 
example of the new-born enthusiasm among 
the Chinese for the science and learning of 
Western nations is to be found than that 
presented by the modern college of Ch'6ngtu, 
situated as it -is some 1800 miles from the 
coast ; ^ and no more remarkable proof of the 
adoption by the people of a new mode of 
life than the inaugural celebration inter- 
college athletic sports witnessed by me at 
the inland town of Sui Fu.^ Mention has 
also been made of public meetings at which 
speeches of a political character have been 
delivered even in the most obscure and most 
inaccessible districts of the interior.^ These 
are the straws which show which way the 

1 See vol. i. p. 146. 2 g^^ vol. i. p. 162. 

3 See vol. i. p. 176. 


wind is blowing, and which, taken together, 
point to this conclusion, that the hope ex- 
pressed to me in conversation by Yuan Shikai, 
unquestionably the greatest man in China 
at the present time, that China would ere 
long take her rightful place among the 
nations of the world, is becoming a convic- 
tion among people of all classes and in all 
parts of the empire. 

The present attitude of China towards 
Europe is the natural corollary of this new- 
found creed. European concessionaires, capital, 
and control are incompatible with the doctrine 
of China for the Chinese, and the Manchu 
Camarilla of reaction being in accord on this one 
point at least with the Chinese party of reform, 
oppose a stolid non possumus to all advances 
made on behalf of the introduction of the 
capital and enterprise of the West. That this 
tendency to meet the demands of the foreigner 
with a direct negative should increase with 
success is only to be expected. The demand 
of Italy for a port in Chekiang was refused, 
and no retribution followed. Later a request 
by Great Britain that the Customs duties levied 


at Niu-chwang should be suspended, pending 
the settlement of the Customs question at Dalni 
and Harbin, was met with a blank refusal. The 
appointment of Te Liang and Tong Shao-yi as 
directors of Customs, though an undoubted 
violation of agreements with Great Britain in 
spirit, if not actually in letter, was successfully 
carried through ; a boycott of American goods 
was successful in eliciting all sorts of professions 
from the President of the United States ; and 
the same weapon is being wielded against Japan 
at the present time. These are some of the varied 
expressions of China's present humour through- 
out the empire generally. In Western China, 
with which I am more especially concerned, 
this mood finds expression chiefly in opposition 
to the introduction of foreign capital and enter- 
prise, more especially as regards the develop- 
ment of the mineral wealth of the country and 
the improvement of its communications with 
the outside world — the two desiderata neces- 
sary to realise the dreams of those who have 
long seen in Ssuch'uan all the constituents of a 
prodigious commercial market. If we accept 
the belief largely held by those interested in 


the development of Eastern markets, that it is 
" in this direction that England has more to 
hope for, more indeed to expect, than she has 
in any other part of the world," ^ and admit 
the conclusion of the Blackburn Commercial 
Mission, that in Ssiich'uan is to be found the 
market of all others it should be our endeavour 
to gain," the question of the introduction of 
modern methods of communication is obviously 
one to which we should attach a paramount 
importance ; yet after travelling close upon 
2000 miles in the territory concerned, I am 
fain to confess that existing means of communi- 
cation are inferior to those of mediaeval Europe, 
and to accept it as a postulate of travel that, 
as all despatch carriers proceed on foot, walking 
is the fastest mode of progression. If we ex- 
cept the limited area of level land provided 
by the Ch'engtu plain, where semi-comatose 
Chinese may be seen being trundled along in 
inconceivably uncomfortable wheelbarrows for 
a modest fare of two cash sl U, or roughly two- 
thirds of a farthing a mile, wheeled transport 
may be said to be unknown, and indeed on 

1 Colonel Sir Thomas Holdich, K.C.M.G., K.C.I.E., C.B. 


the narrow, paved roads which cover the coun- 
try, and which in mountainous districts tend to 
become little else than a succession of stone 
staircases, to be a matter of physical impossi- 
bility. The man of means and position travels 
at his ease in a sedan-chair, his less fortunate 
brother with pony or mule, while the bulk of 
the population performs such journeys as may 
be necessary upon foot. Merchandise where 
water transport is not available is carried 
laboriously over hill and dale on the backs 
of ponies or men at a vast expenditure of 
time, and at rates varying from 2d. to 8d. 
per ton mile. 

What, then, may be expected from the new 
spirit of the day in a matter calling so urgently 
for reform ? The action of the officials pro- 
vides an example of what has already been 
urged, namely, that the main object in view 
is the riddance of importunity from without, 
while, as far at any rate as the bulk of the 
present generation of officials is concerned, 
genuine progress is a matter of secondary 
consideration. An Anglo-French combination 
have declared themselves ready to build the 



main lines most urgently required, but are 
met with the reply that the officials and 
gentry propose to construct them themselves. 
If this attitude be persisted in, the construction 
of railways in Western China is likely to be 
postponed to the Greek kalends. Some steps 
have been taken to give colour to the pretext 
that the people propose to build their own 
lines : Japanese engineers have been engaged 
in surveying the country with a view to dis- 
covering a suitable route for a railway from 
Hankow to Ch'engtu, a railway office has been 
opened in the latter city, and funds have been 
solicited since January 1904. But, as I have 
already pointed out, private individuals are 
very loath to invest money in concerns run 
under official management and control, and 
any one hoping to see railways in Western 
China built and financed by the Chinese 
themselves is doomed to disappointment.^ 

In the adjoining province of Ytin-nan the 
same tactics are being pursued. The practica- 
bility of a light line from Bhamo as far as 
T'eng Ytieh was established by the members 

1 See vol. i. pp. 149-152. 


of the Ytin-nan Company's Commission in 
1899, and as the result of a detailed survey 
made in 1906 by an expert despatched from 
India^ it was estimated that a light railway 
could be cheaply and expeditiously built with 
a fair prospect of covering expenses and paying 
a dividend of 2 per cent. With this informa- 
tion in hand proposals were made for the joint 
construction of a line by British and Chinese, 
and a suggestion put forward that an expert 
should again be sent from India to examine 
the country beyond T'eng Ytieh, with a view 
to ascertaining whether it would be possible 
to carry such a line on to Tali Fu at a future 
date. At this juncture the influence of the 
*' China for the Chinese " party began to make 
itself felt. A Ylin-nan-Ssuch'uan Eailway Co. 
had been formed in the capital in 1905, and 
regulations drawn up under orders from the 
Wai-wu-pu on the basis of similar regulations 
governing the Ch'engtu - Hankow Eailway Co. 
The nature of this corporation may be gathered 
from a perusal of Eule I., which declares that 
''the Ylin-nan-Ssuch'uan Eailway Co. is an 
undertaking by the gentry and people of all 


Yiin-nan. As in the case of the Ch'engtu- 
Hankow railway, no foreigner will be allowed 
to hold shares, nor shall foreign capital be 
borrowed." No sooner was it noised abroad 
that Great Britain was willing to co-operate 
with China in building a line from Bhamo to 
T^eng Yiieh than the " Yiin - nan - Ssiich'uan 
Kail way Co." added to their title and became 
thenceforth the *' Yiin - nan - Ssuch'uan and 
T'eng Yiieh Eailway Co.," and announced that 
they themselves were competent to build a 
line from T'eng Yiieh to the Burmese frontier, 
where they would be willing to connect with 
the Burmese railways in accordance with Article 
XII. of the Anglo-Chinese Agreement of 1897. 
The Government of India, desirous of obtaining 
an expert opinion on the country beyond T'eng 
Yiieh before committing themselves to a 
definite railway policy beyond their borders, 
refrained from pressing the matter of construc- 
tion further with the provincial Government, 
and persisted only in their request for per- 
mission for an engineering expert to carry on 
to Tali Fu the survey already successfully com- 
pleted as far as T'eng Yiieh. A correspondence 


between Burma and the Yiin-kuei Viceroy, 
characterised by some acerbity, thereupon 
ensued, while the headstrong members of the 
student junta in the Yiin-nanese capital ex- 
ceeded the bounds of diplomatic courtesy by 
publishing what practically amounted to an 
incitement to the population to resist by force 
in the event of the request being granted. In 
the end a compromise was come to, ordinary 
traveller's passports being granted to the 
members of an engineering party, no mention 
being made therein of the object of their 
journey. Thus does China save her face. 

It will be seen, then, that the effect of 
China's revolt against foreign tutelage upon 
the development of the western provinces is a 
retarding one. As far as railways are con- 
cerned, the only schemes likely to materialise 
in the near future are those which are financed 
with foreign capital and carried out by foreign 
engineers. The effect of the present temper 
of the people is to restrict these to concessions 
already irrevocably granted, and so we find 
that the only line of railway actually under 
construction throughout the 300,000 square 


miles of Yiin-nan and Sstich'uan — a territory 
nearly four times the size of Great Britain — 
is the French line now building from Hannoi 
in Tongking to the capital of Yiin-nan vid the 
frontier town of Lao-kai. It is with the origin 
and progress of this line consequently that the 
following chapter deals. 




By the year 1910 it is expected that the 
French line which already runs from Hannoi 
vid Lao-kai on the Yiin-nanese frontier to a 
point some seventy or eighty miles beyond, 
will reach the capital of the province. This, as 
has already been made clear in the previous 
chapter, is the only line in all Western China 
that is in a state of actual construction, and 
may be said to have been brought into being 
indirectly by French jealousy of an anticipated 
advance by Great Britain into Yiin-nan from 
the side of Burma, and directly by the vast 
ambitions and imperious energy of M. Paul 


Doumer, late Governor - General of French 

In evidence of this, let me recall rapidly the 
various chapters in the British railway scheme 
which was the primary if innocent cause of this 
vast expenditure on the part of France. A 
survey for a railway from Mandalay to the 
Burmese frontier at Kung-long, carried out be- 
tween 1892 and 1894, and the commencement 
of construction on the first section of such a 
line in 1895, excited the animosity of the for- 
ward party among French Colonial statesmen. 
" Our neighbours," wrote Prince Henri d'Or- 
leans in the latter year, who know full well 
that railways are the means of real colonisation, 
think to establish a line running from Man- 
dalay to Xien-hong. It imports us to retort to 
this new movement of England with a similar 
one of our own ; and to this end it is absol- 
utely necessary for us also to have a railway 
penetrating China." Into the clause of the 
Anglo -Chinese Agreement of 1897 providing 
for the consideration of the construction of 
railways in Yiin-nan in the event of trade con- 
ditions justifying this, and for such railways 


being connected with the Burmese lines, was 
read a sinister design, speedily followed by a 
significant declaration by M. Doumer. Eng- 
land," he declared to the Conseil Superieur of 
the French colony in 1897, " with a determina- 
tion which we on our side have not yet dis- 
played, has set her face towards Yiin-nan and 
Ssiich'uan, which seemed to be reserved for our 
commercial exploitation." M. Doumer, how- 
ever, was not the man to be discouraged by 
trifles. " Nevertheless," he added, " if we only 
bestir ourselves, we are bound to win in this 
friendly rivalry. We find ourselves at an 
advantage, thanks to the facility for reaching 
Yiin-nan which we derive from the valley of 
the Eed river." 

The fruit of this reflection was not long in 
ripening. Four months later, in April 1898, 
the Chinese Government granted to the 
French Government, or to the company which 
the latter might designate, the right to make a 
railway from the frontier of Tongking to Yiin- 
nan Fu, the Chinese Government having no 
other responsibility but to furnish land for the 
road and its dependencies." Nor were the 


public left long in doubt as to the extent of the 
assistance which might be looked for from the 
Government of France. By a law of December 
25th of the same year, the Governor -General 
of Indo-China was authorised to give a guar- 
antee of interest to the company that might 
become the grantees of the line of railway from 
Lao-kai to Yiin-nan Fu and its prolongations, 
the extent of the engagement being limited to 
3,000,000 francs and its duration to seventy- 
five years, the payment of this sum by the 
Government of Indo-China being guaranteed 
in its turn by the Government of the French 

With characteristic impetuosity M. Doumer 
set to work. Government surveyors were de- 
spatched during 1899 to examine the country, 
and the Governor - General himself paid a 
meteoric visit to Yiin-nan Fu, covering the nine 
days' journey from Meng-tzu to the capital in 
rather less than half that time, and finally, 
after a breathless forty -eight hours of inter- 
views and calls, during which he succeeded in 
arousing the provincial mandarinate from their 
habitual state of polite and dignified delibera- 


tion to a frenzy of bewildered and indignant 
perturbation, departing on a reckless return 
journey to further exploits of activity within 
the borders of his own dominions. An unwel- 
come halt was called in the proceedings by the 
outbreak of 1900, but in 1901 the tireless 
Governor- General returned to the charge, and 
the summer of that year saw him in France 
engaged in negotiations with the banking 
houses of Paris. 

The outcome of these negotiations was an 
agreement signed on June 15th, the gist of 
which was as follows : The syndicate thereby 
formed to construct at their own risk and ex- 
pense the line from the French frontier at 
Lao-kai to Yiin-nan Fu, and to receive from 
the Government of Indo - China, fully con- 
structed and in a condition to be worked, the 
239 miles of railway from Haiphong on the 
French seaboard to Lao-kai. The working of 
the whole line to be granted to the syndicate 
for a term of seventy -five years, the profits 
being shared between the company and the 
Government of Indo-China. For the purpose 
of constructing and working the line a capital 


sum of £4,040,000 was subscribed as follows : 
scrip of the company, £500,000 ; subvention 
from the Government of Indo-China, £500,000 ; 
guaranteed bonds within the limit of an annual 
payment of £120,000, £3,040,000. The terms 
of this agreement were ratified by a law of 
July 5th, 1901. The task of construction was 
entrusted to a company already experienced in 
the matter of Asiatic railway building in the 
fertile field for railway concessions provided by 
Asiatic Turkey, and with the arrival of their 
engineers upon the scene of action the first 
check arose. It appeared that the route which 
in his zeal M. Doumer had caused to be sur- 
veyed by his own officials in 1899 was far from 
being the best, and the claims of an alternative 
line vid the Nam-ti valley to the east were 
strongly supported by the company. The de- 
cision was left with the Governor - General. 
The proposed alignment, though undoubtedly 
superior from an engineering point of view, 
passed through a less populous and less fertile 
country, and it was only after much discussion 
and careful consideration, and not until Jan- 

china's geowing apprehensions. 45 

uary 1904, that the company's project as a 
whole was definitely accepted. 

In the meanwhile the French representative 
at Peking had not been idle. In October 1903 
an instrument of thirty-four articles was drawn 
up and signed, laying down the conditions 
under which the work of construction should 
proceed. The document is of interest as show- 
ing the growing apprehension on the part of 
China of French aggression. Thus, under 
article 15 it was agreed that a police force of 
Chinese might be enrolled to operate along the 
line and among the workmen, but under no 
circumstances might European troops be em- 
ployed. And again, under articles 23 and 26, 
that Chinese troops and their supplies should 
be carried at half rates and mails and official 
despatches free ; but salt, contraband goods, 
and European troops should not be carried 
along the line at all. It was also agreed that 
machinery and all material necessary for the 
construction of the line should enter the 
country duty free, that branch lines might be 
built after agreement made locally and at 


Peking, and that the restoration of the line 
might be claimed by China after eighty years 
on payment of the loss, if any, incurred by the 
concessionary company. 

All preliminary arrangements being thus 
completed, the work of construction was at 
last actually begun, some six years after M. 
Doumer's speech to the Conseil Superieur 
already quoted. With the commencement of 
actual operations began also the physical 
difficulties which had to be overcome. The 
country, though presenting but a fraction of 
the physical obstacles that lie in the path of 
the would-be railway builder from Burma, is 
by no means easy ; moreover, a serious diffi- 
culty soon presented itself in the extremely 
malarious character of the Nam-ti valley. 
With the turning of the soil is stirred up a 
peculiarly virulent miasma, which scatters 
death broadcast among those who dare to in- 
trude upon its primeval solitudes. It is said 
that from Lao-kai itself no less than 460 of a 
garrison maintained at its full strength of 450 
have been sent away sick or dying in the 
course of a single year, while it was stated by 


the Commissioner of Customs at Meng-tzu in 
1905 that ''the death-rate among the coolies 
imported from various parts of the empire and 
put to work in this dreaded valley may, with- 
out exaggeration, be estimated at 5000, or 70 
per cent of the total number employed on that 
particular section of the line." 

The company being liable under the regula- 
tions of 1893 to provide compensation or 
medical aid in cases of sickness or accident, 
a large increase in hospital accommodation 
and medical staff had early to be supplied. 
Under such conditions the cost of construc- 
tion inevitably increased as the work went on, 
more especially as the price of labour displayed 
a steady and disconcerting tendency to rise. 
With 1000 Europeans and 46,000 Chinese 
employed during the winter of 1906-7, it 
was found that the original estimate of ex- 
penditure fell considerably below the mark, 
and a demand for an additional 60,000,000 
francs has recently been made. Early in 
January 1907 a commission representing the 
different parties concerned were at Yiin-nan 
Fu on a mission of inquiry into the merits 


of the case, though little doubt can be enter- 
tained as to sanction being granted for the 
raising of the additional sum required. It will 
be seen, then, that apart from the cost of con- 
struction of the line from Haiphong to Lao- 
kai, and of M. Doumer's somewhat hasty and 
premature surveys in 1899, the cost of the 
291 miles of railway in Chinese territory will 
amount by the time of its completion to 
approximately £6,500,000. 

This, then, is the present extent of the 
liability with which M. Doumer has saddled 
his country, in order to counteract the influence 
of the railway which it was supposed Great 
Britain intended pushing forward from Man- 
dalay. Let us stop for a moment to see how 
far French fears of British enterprise were 

As a result of the surveys already referred 
to as being carried out in the country east of 
Mandalay in the years 1892-94, the first section 
of a railway leaving the main line at Myohaung, 
a few miles south of Mandalay, was begun in 
1895, and opened as far as Sedaw on January 


1st, 1898.^ By April 1st, 1900, it was com- 
pleted as far as Maymyo, the summer capital 
of Burma, and by March 1st, 1903, Lashio 
was reached. Here the line rests, and is likely 
to rest for many a year to come, since, as 
Lord Curzon pointed out in a speech at 
Kangoon on December 10th, 1901, there is no 
valid reason why " we should csivvj on our 
present railway at the extra cost of consider- 
ably over half a million sterling to the Kung- 
long Ferry, across which the entire Sino- 
Burmese trade is successfully transported in 
two dug-outs, and amounts to less than 100 
tons a - year." The railway is, of course, a 
mountain line, 177 miles in length, with a 
ruling gradient of 1 in 25 and a maximum 
curve having a radius of 337 feet. It cost up 
to March 1904 Rs. 2,29,50,545, and does not 

^ The country was first examined in 1890, and reconnaissance 
and surveys continued during each cold weather up to the 
spring of 1894, when the Indian Government dispersed their 
staff, having given up the idea of the construction of the line 
for the present. No sooner had they done so, however, than 
an order was received from Downing Street for the immediate 
commencement of the line. 



yet pay its own way, though freight on it 
averages 12 pies a ton -mile, or double the 
charges on other Burmese lines. It spans 
the famous Gokteik gorge by a bridge 2250 
feet in length resting upon thirty-two piers of 
iron work, contracted for by the Pennsylvania 
Steel Company for £66,000 — a sum less by 
£52,000 than the lowest British tender. 

It must be admitted, then, that the British 
scheme has not, even at the present day, 
justified in the remotest degree the fears of 
the directors of France's Eastern policy. And 
if there is no sign of a forward policy in the 
scheme as it stands to-day, there is certainly 
little enough warrant for any assumption that 
Great Britain was proposing to embark upon 
a policy of penetration by railway, as far as 
China was concerned, in the utterances of her 
responsible statesmen. For while the utmost 
importance was attached by French statesmen 
to British schemes, these same schemes afforded 
matter for academical discussion at the hands 
of one Indian Viceroy, and evoked a flood of 
satirical denunciation from another. In Dec- 
ember 1898 Lord Elgin travelled over the 


Burmese railway system as far as it could take 
him, in the direction of what he conceived 
must be at least "two ultimate objects of its 
ambition — namely, connecting links with 
Assam on the one side and China on the 
other " ; and having done so, he expressed 
the opinion that neither of these hopes was 
likely to see realisation in the near future, 
and that a good deal of this work lay " outside 
the special sphere of the Government of India." 
Whatever small hopes of Government help 
may have been entertained by private in- 
dividuals after this declaration must have 
been rudely shattered by Lord Curzon's un- 
compromising utterance three years later. " In 
my belief," he declared, there has been a 
greater lack both of exact knowledge and of 
perspective in the treatment of this matter, 
and a looser rein given to the imagination, 
than in almost any subject of contemporaneous 
politics." The building of a railway across 
Ylln-nan to the Yang-tsze would be, "if not 
a physical impossibility, at any rate so costly 
an undertaking that neither the Home Govern- 
ment, nor the Indian Government, nor any 


company or syndicate, could conceivably under- 
take it. The idea that if it were built the 
wealth of Ssuch'uan would stream down a 
single metre-gauge line, many miles of which 
would have to scale the mountains by a rack, 
to Eangoon, while great arterial rivers How 
through the heart of the province of Ssuch'uan 
itself, which are quite competent to convey 
its trade to and from the sea, is one, as it 
seems to me in the present stage of Central 
Asian evolution, almost of mid-summer mad- 
ness." It is probable that it began to dawn 
upon the less impulsive among French states- 
men about this time that an unnecessary 
importance had been attached to the British 
menace, while those primarily responsible for 
the drain upon the French exchequer entailed 
by the construction of the Lao-kai-Yun-nan Fu 
railway sought solace in the reflection, put 
into words by M. Doumer, that " it had had 
as its consequences the effect of bringing the 
Government of India to renounce the scheme 
which it had for long entertained of penetrat- 
ing into Ylin-nan from Burma." 

Yet the case put by Lord Curzon was a 


perfectly reasonable deduction from geograph- 
ical knowledge recently acquired. Space forbids 
anything more than the briefest reference to 
the labours of the Yiin-nan Company's Com- 
mission, despatched by the enterprise of a 
private company to examine the country with 
a view to railway construction in 1899 and 
1900. A possible though difficult line of, 
roughly, 1000 miles from the Burmese frontier 
at the Kung-long Ferry to Na-ch'i on the 
Yang-tsze was found. The section to Ylin-nan 
Fu, 485 miles in length, would contain upwards 
of 16,000 feet of rise and fall, would require 
a ruling gradient of 6 per cent, and curves 
varying from an ordinary working curve of 
16° up to 20° and in a few cases 24°. The 
disadvantages of heavy-grade sections, entail- 
ing the use of special engines, are sufficiently 
great in lines of moderate length, and would 
be infinitely greater in a long single line like 
that proposed. A rack section, similar to 
those suggested for the Burmo - Chinese line, 
may be seen in working on the Shin-yetsu 
railway in Japan. Here a rise of rather more 
than 1800 feet between the stations of Yoko- 


gawa and Karuizawa is negotiated in a distance 
a little short of seven miles. The gradient 
employed is 1 in 15, the speed attained is 
seven miles an hour, and the weight which 
can be hauled up by a combination of specially 
constructed engines, which have to be changed 
at each end of the section, is 135 tons. The 
fact that this line was built against the re- 
commendation of a European adviser, that 
traffic is frequently seriously blocked, and that 
an alternative line to relieve congestion is now 
in process of construction, gives some idea of 
the inconvenience which would be not unlikely 
to ensue with the adoption of such a system 
on many miles of a single - line mountain 
railway 1000 miles in length. 

When it is considered that the line under 
review would on the whole be more difficult 
even per mile than the Kocky Mountain section 
of the Canadian Pacific Eailway ; that it would 
consist of 1000 miles of mountain railway 
against the 575 miles of mountain track in 
the case of the Canadian line ; that the country 
through which it would pass is sparsely popu- 
lated, and has under present conditions little 


to export ; that the bulk of the exports and 
nearly half of the imports of its ultimate goal 
— the province of Sstich'uan — are from and to 
the eastern provinces of China ; and, finally, 
that even if they were not, freights on such 
a line could hardly hope to compete favourably 
even with the existing heavy charges by the 
Yang-tsze, — it becomes apparent to the impartial 
observer that the attitude of the Government 
of India in 1901 was determined by more 
substantial and practical reasons than any 
provided by the rival enterprise of France. 

Great Britain can, indeed, afford to look with 
equanimity upon the progress of a railway, 
built at some one else's expense, from the coast 
to Yiin-nan Fu. The tax which her goods pay 
— i.e., one-fifth of the general tariff of Indo- 
China for the privilege of passing through that 
country — has had little effect, seemingly, upon 
her trade, since nearly 70 per cent of the trade 
passing along this route to and from Yiin-nan 
is still with Hong Kong. Thus in 1906 the 
trade coming under the purview of the Im- 
perial Chinese Customs at Meng-tzu amounted 
to 10,824,864 Hk. Tls., of which Hong Kong 


claimed 7,520,016 Hh Tls. and Indo- China 
only 3,304,848 Hh Tls. And if we take the 
whole of the trade of Yiin-nan, with its two 
neighbours Burma and Tongking, which comes 
under the purview of the Imperial Chinese 
Customs at the three treaty marts of the prov- 
ince — Meng-tzti, T'eng Yiieh, Ssumao — we find 
that in 1906 73 per cent of the total, valued at 
£2,040,000, was with British possessions and 
only 27 per cent with those of France.^ It is 
worthy of note, however, that the importation 
into Yiin-nan of cotton yarn from the mills 
of Tongking shows a slight but perceptible 
increase, the percentage of the total supplied 
by India having fallen from 92*6 per cent in 
1905 to 90*9 per cent in 1906, and that sup- 
plied by Tongking having risen from 6*9 per 
cent to 7*8 per cent; while Japan also showed 
improvement, supplying 1*3 per cent of the 
total in 1906, as against '5 per cent in 1905. 
The importance to Tongking of fostering this 
young industry is urged by a writer in the 
'Courrier d'Haiphong' of October 23rd, 1906, 

^ See Consular Report of the Trade of Meng-tzu for 1906 
(Cd. 3727—15). 


who advocates the cultivation of cotton in 
Annam and Laos ; and the opinion is expressed 
by the Commissioner of Customs at Meng-tzti 
that " when the Tongking mills have developed 
their power of production, and can turn out yarn 
in sufficient quantity to undersell that of other 
and more distant mills, the Ylin-nan market 
will be entirely monopolised by them." For 
India, who during the past five years has sent 
an average quantity of 98,599 cwt. of yarn 
into Yiin-nan by this route, this prospect has 
its serious aspect. 

For this reason, and because for political 
reasons some action may be advisable with a 
view to maintaining the balance of power in 
a province marching for some hundreds of 
miles with British Burma, I propose to deal 
in the following chapter with the possible 
avenues of ingress open to Great Britain from 
the side of Burma. 



RAILWAY SCHEMES {continued) : 


I HAVE sometimes heard it said that the line 
of country to be followed by Great Britain with 
a view to opening up a direct trade-route with 
Western China, is across a comparatively narrow 
strip of country between Sadiya, in Assam, and 
Bathang, on the confines of China and Tibet; 
and the Indian Government were on the point 
of sending a small expedition to examine this 
unknown strip of country in 1905, when the 
rising in the neighbourhood of Bathang referred 
to in chapter viii. took place and rendered the 
proposed expedition inadvisable. 

The suggestion is by no means a novel one. 
Mr T. T. Cooper, who was at Bathang in 1868 in 


search of through means of communication be- 
tween India and China, heard from a Chinese tea- 
trader " of the existence of a trade-route from 
Bathang to Kooemah, a town in the Tibetan 
province of Zy-yul, situated near the borders 
of Assam, twenty days' journey distant."^ 
Tibetan exclusiveness, however, has to this day 
prevailed against the exploration of " the small 
and peculiar region immediately east of Assam 
that separates India from China." ^ Cooper in 
1868, Davies in 1900, Hosie in 1904, all met 
with a determination on the part of Tibetans 
and Chinese alike to prevent their crossing the 
frontier, and the reason given by Cooper for 
this exclusiveness is probably in the main cor- 
rect. "Nothing," he says, "is more contrary 
to the policy of the Chinese Government and 
the Lamas than the introduction of Assam tea. 
The Chinese, on their part, dread the loss of 
their valuable wholesale monopoly, to retain 
which they give the Lamas the monopoly of 

1 ' Travels of a Pioneer of Commerce in Pigtail and Petti- 
coats,' p. 247. 

2 S. E. Peal — 'Journal of the Asiatic Society of Bengal,' 
vol. 48, part ii., 1879. 


the retail supply ; who by this means hold in 
absolute subjection the people, to whom tea is 
a prime necessary of life. The Lamas, on their 
part, fear that with the introduction of British 
trade the teachers of the new religion would 
come, and free trade and free thought combined 
would overthrow their spiritual sway." ^ 

There is, however, a far graver objection to 
this route as a highway of commerce than any 
presented by the jealous attitude of Tibet, as was 
pointed out by Mr S. E. Peal thirty years ago. 
"Undoubtedly towards the north and north- 
east (of Assam)," he wrote in 1879, "the diffi- 
culties of finding an outlet at any reasonable 
elevation are demonstrated. In most cases the 
routes must cross at least 10,000 feet or more, 
besides being proverbially difficult." ^ And he 
points out that Assam has never to our know- 
ledge been entered by any large force from the 
north-east or due east, the only invasions, ex- 
cepting those up the valley from the west, 

1 • Travels of a Pioneer of Commerce in Pigtail and Petti- 

2 ' Journal of the Asiatic Society of Bengal,' vol. 48, part ii., 


bavins^ come from the south across the Patkai 

For my own part, I cannot conceive of any 
route less likely to benefit British trade. If 
Bathang were on the borders of the commercially 
valuable portions of Sstich'uan, such a route 
would indeed speedily become the highway 
into the province ; but it is nothing of the 
sort. It is, in fact, eighteen days distant from 
the true Chinese border at Ta-chien-lu. More- 
over, as Colborne Baber has pointed out, 
" when the Chinese border is reached at Ta- 
chien-lu, the nearest city of any importance — 
namely, Ya-chou — is still seven or eight days 
distant, and has water communication with 
the sea." Even so, were the country between 
Bathang and Ta-chien-lu of a comparatively 
level nature, a railway would overcome these 
objections ; but far from the country being 
even comparatively level, it is a perfect laby- 
rinth of stupendous mountains. The existing 
track over it is described by Sir Alexander 
Hosie, who speaks of it as "a road barred by 
numerous mountain-ranges, whose lofty passes 
inspire terror in the breasts of the superstitious 


wayfarers " ; and he mentions no less than ten 
passes of over 13,000 feet in height, including 
four of over 15,000 feet, the highest being 
16,486 feet. In the spring of 1900 Captain 
Eyder travelled to Ta-ehien-lu from the town 
of Yerkalo, some distance south of Bathang. 
" The first part of our journey," he says, " took 
us about a month, and a very rough time we 
had. Each pass we crossed cost us the lives of 
some of our mules, . . . and we were all fairly 
worn out when we reached Ta-chien-lu." I 
have said enough, perhaps, to make the objec- 
tions to a route in this direction tolerably 

All routes east from Assam must suffer from 
the same disadvantages as the suggested Sadiya- 
Bathang route — namely, the size and character 
of the mountain-ranges which lie between her 
and the wealthy districts of Western China, 
the eastern portions of Ssuch'uan. Turning 
south, however, the possibility of a line of 
communication over the Patkai range into the 
Hkamti country and on to Tali Fu has been 
suggested by some. I have doubts as to the 
advantage of this route, since there never 


appears to have been a through trade-route 
in this direction of, at any rate, anything 
like the importance of the Bhamo-Tali Fu 
route; and, moreover, even if there is no in- 
superable difficulty in crossing the Patkai 
range and reaching the Hkamti country, the 
ranges hedging in the valleys of the Salwin 
and Mekong rivers still lie athwart the road 
to Tali Fu. 

Prince Henri d'Orleans, who travelled from 
Atentzu to Sadiya in 1895, was not impressed 
with the character of the route. " What we 
were traversing," he wrote, "is the high road 
from China to India — the subject of so many 
English dreams, and the ideal line of Captain 
Blakiston. For the present, I rather imagine 
it has small chance of becoming an artery of 
commerce."^ More recently the journey from 
Tali Fu to Sadiya has been made by a route 
somewhat south of that taken by Prince Henri 
d'Orleans, by Mr E. C. Young. He speaks of 
the Hkamti district as fertile and populous," 
and says that " the physical characteristics of 
the country render it suitable for the con- 

^ * From Tongking to India.' 


struction of lines of communication, such as 
railways " ; ^ and a little further on in the 
same paper he declares that ''west of Kumki 
(situated on the upper waters of the Dihing 
river) the configuration of the country is not 
exceptionally difficult, and I believe it would 
be quite feasible to construct a railway up to 
the Dihing valley to a point near Kumki, and 
then through the Patkai hills and down the 
valley of the Sinan Hka." This would give 
a railway route from Assam into the Hkamti 
country; but looking east beyond that country 
the Salwin and the Mekong ranges still loom 
large and forbidding across the road to Tali 
Fu ; and Mr Young himself gives a graphic 
description of the difficulty of the Salwin 
valley. " The bed of the river," he says, 
" lies at an extremely low level relatively to 
the surrounding country, and I found that 
at a point a few miles north of Lu-kou it 
was only about 3000 feet. The mountains on 
either side rise to heights varying from 10,000 
to perhaps 15,000 feet, and their slopes are ex- 

1 'Journal of the Royal Geographical Society,' August 1907. 



traordinarily steep and precipitous."^ Taking 
everything into consideration, I do not think 
that much store need be set by proposals for 
the construction of railways into China from 

Turning south to Burma, we find a vari- 
ety of suggestions which have been made 
from time to time for the penetration of 
Western China. Mention need only be made 
of a scheme put forward by Mr A. E. 
Colquhoun in the early eighties, in that he 
proposed to ignore all existing lines in Burma 
itself and their probable extensions, and 
starting from Maulmein, at the mouth of the 
Sal win river, to carry his railway north-east 
through the Shan country vid Zimme, and 
on to the frontier of China in the neighbour- 
hood of Kiang Hung. The arguments which 
could be adduced in favour of such a line 
were greater in 1883 than they are at the 
present day. In 1883 the railway from 
Rangoon to Prome was the only line com- 
pleted, the Sittang valley railway from Ran- 

1 ' Journal of the Royal Geographical Society,' August 1907. 


goon to Toungoo not being opened till 1884. 
Upper Burma was an independent kingdom, 
and it was not until 1889 that the Burma 
railway reached Mandalay, and not until 
1895 that the northern extension of the line 
from Mandalay — namely, the Mu Valley State 
Eailway — was opened to Katha, the nearest 
point on the existing railway system to Bhamo. 
Moreover, Mr Colquhoun refused to consider 
the possibility of a railway from Bhamo in 
the direction of Tali Fu. Such a scheme, he 
thought, would never be carried out except 
" in the brain of an unpractical theorist," 
nor could he imagine any engineer wasting 
a thought upon such an idle dream." ^ Like 
many other writers on the matter, he thought 
that Colborne Baber " had effectually disposed 
of this question in his most charming and 
luminous report of his journey when he was 
attached to the Grosvenor Mission."^ 

But even in 1883 Mr Colquhoun's proposals 
lay open to some obvious criticisms. If we 
accept the proposition that Tali Fu should 
be the objective of any railway from Burma 

1 ' Across Chryse,' vol. ii. p. 232. - Ibid., p. 228. 


into Western China — and this will hardly 
be disputed — the immense length of the 
proposed line is an obvious disadvantage. 
Taking Mr Colquhoun's figures, we find that 
a line of between 600 and 700 miles has first 
to be constructed through the Shan country 
before the Chinese frontier is reached. And 
having reached the Chinese frontier in the 
neighbourhood of Kiang Hung, there is still 
the whole of the mountainous area of south- 
western Yiin-nan to be negotiated, an area 
which would probably necessitate the construc- 
tion of a mountain railway of considerably 
greater length than the 295 miles which Mr 
Colquhoun gives as the distance between 
Bhamo and Tali Fu. Mr Colquhoun's whole 
scheme was, in fact, governed by a supposed 
axiom which, in the light of later knowledge, 
turns out to be no axiom at all — namely, that 

any railway passing from west to east north 
of latitude 17° 50' is impracticable." ^ 

With the Kung-long Ferry scheme I have 
already dealt, and there remains only the 
Bhamo - T'eng Yiieh - Tali Fu route. Those 

^ ' Across Chryse,' vol. ii. p. 237. 


who have followed me in my excursion on 
railway construction in chapter xv. will be 
prepared for the statement that it is, after all, 
along this time-worn trade route that expert 
opinion has decided that any railway from 
Burma into Western China should be carried.'^ 
As far as T'eng Ytieh, construction would be 
comparatively easy, and the cost not excessive ; 
but between T'eng Yiieh and Tali Fu the 
difficulties of construction, though not by any 
means insuperable, as declared by Colborne 
Baber and Colquhoun, are admittedly con- 
siderable, and the cost great. The 295 miles 
given by Colquhoun as the distance be- 
tween Bhamo and Tali Fu would expand to 
little short of 400 of railway track, and the 
cost of the enterprise would probably reach 

^ As an example of the difficulty of outrooting a popular 
belief, I quote the following from the most recent publication 
on railway construction in China — namely, Mr P. H. Kent's 
* Railway Enterprise in China,' published in the autumn of 
1907 : " The physical difficulties of the Bhamo route, how- 
ever, are said, for practical purposes, to be insurmountable, 
and after a series of unfavourable reports it has now been 
abandoned in favour of entering China by Kung-long Ferry." 
Mr Kent then proceeds to re-quote the oft-quoted words of 



£5,000,000. But the important point is that 
we now know that the construction of a 
metre -gauge, steam - traction line of railway 
from Bhamo to Tali Fu is no longer a figment 
of the " brain of an unpractical theorist," 
but a matter of practical possibility.^ 

Possessed of this knowledge, we have to 

■^llt is interesting to note that the ruling gradient on a 
metre-gauge line from Bhamo to Tali Fu, described by so 
many writers as impracticable, would be 4 per cent, as com- 
pared with a ruling gradient of 6 per cent on the Kung-long 
Ferry line, which has been so often described as the only 
possible route for a railway from Burma into China. The 
following figures may be confidently accepted as an accurate 
estimate of the character and cost of a metre-gauge steam- 
traction line from Bhamo to Tali Fu : — 

Section I. Bhamo-T'eng Yiieh — 


122 miles. 

Euling gradient . 

2'5 per cent (1 in 40). 

Limiting curvature 

25 per cent (radius of 229 ft.) 

Cost . 


Section 11. T'eng Yueh-Tali Fu— 


262 miles. 

Ruling gradient . 

4 per cent (1 in 25). 

Limiting curvature 

25 per cent (radius of 229 ft.) 

Cost . 


Total, Bhamo-Tali Fu— 


384 miles. 

Ruling gradient . 

4 per cent (1 in 25). 

Limiting curvature 

25 per cent (radius of 229 ft.) 

Cost . . 



ask ourselves two questions : first, is it 
desirable that such a line should be built ; 
and, second, if it is desirable, how is its 
construction to be brought about. I propose 
to examine these two questions in the order 

There are three main grounds on which the 
construction of railways may be considered 
desirable — commercial, political, and strategic. 
In this particular case the arguments in fav- 
our of construction may be said to be partly 
political and partly commercial. The argu- 
ments based upon political considerations are 
these : Yiin - nan is a part of the Chinese 
empire which marches for hundreds of miles 
with the possessions of Great Britain, and 
also of France. The interests of Great Britain 
lie chiefly in the west of the province, and 
those of France in the east. Tali Fu is the 
centre of influence of western Yiin -nan, and 
Yiin-nan Fu of the eastern portion of the 
province. France will shortly be in command 
of a railway from her possessions in Indo- 
China to Yiin-nan Fu, and will acquire the 
influence and prestige which such an asset 


must inevitably give her. She has an agree- 
ment with China which practically gives her 
the refusal of construction of branch lines 
when her railway has reached Yiin-nan Fu. 
The easiest and probably most advantageous 
branch line which she could build would be 
a line from Yiin-nan Fu to Tali Fu. This 
would mean the acquisition by France of a 
position of paramount importance throughout 
Yun-nan and up almost to the British frontier. 
In. view of the growing importance of China 
as a Power in Asia, such a situation could 
hardly be acquiesced in by Great Britain. 
The first argument, therefore, in favour of 
a policy of construction may be said to be 
that which is based upon the necessity of 
maintaining the balance of power. No possible 
objection could be raised by France, first, 
because Tali Fu is obviously in the British 
sphere of interest as opposed to the French 
sphere ; and secondly, because, by agreement, 
France is pledged to assist Great Britain in 
the acquisition of any concessions in Yiin-nan 
equivalent to concessions possessed by herself.^ 

1 See chapter xviii., vol. i. p. 314. 


A second argument, based upon political 
considerations, is the increased control which 
a railway would give Great Britain over a 
not too well-ordered frontier — not alone 
practical control but moral control also. The 
outward and visible signs of influence and 
power are still the most potent weapons by 
which the governing races of the West maintain 
their position among the peoples of the East. 
The force of this argument, in a wider 
application than to the border tribes alone, 
must also be borne in mind. 

A consideration of the commercial side of 
the question has elicited extreme views in 
both directions. Those whose imagination 
has been fired by the conception of a great 
through railway system from British Burma 
into the heart of China, have been apt to 
minimise the difficulties attendant upon such 
a scheme, and to vastly overrate the wealth 
of the territory which it would tap. On the 
other hand, those who have opposed a forward 
policy have perhaps taken an unduly pessi- 
mistic view of the future possibilities of 
Yiin-nan. Mr John Nisbet, with an experience 



of Burma extending over a period of nearly 
a quarter of a century, has written despond- 
ingly of the prospects of railway construction 
into Yiin-nan. " It is maintained," he writes, 
''that it will be enormously expensive to build 
and to work, that it will not give adequate 
returns, and that in any case extensions and 
ramifications of the railway net throughout 
Burma are preferable — unless commercial 
principles are to he subordinated to political 
and strategic considerations. To be profitable, 
or even possible, trade must be reciprocal ; 
and there seem to be no products in Yiin-nan 
which can be utilised in exchange for goods 
of British manufacture to a sufficient extent 
to make the railway in question remunera- 
tive."^ This is, no doubt, to a great extent 
true, though I believe that with the advent 
of a railway trade would be enormously 
stimulated. Experience shows us that trade 
will spring up round a railway even on the 
most unpromising soil, and there are parts 
of Yiin-nan which are very far from deserving 

^ 'Journal of the Society of Arts,' January 27tb, 1899. The 
italics are mine. 


such a description. The cotton trade between 
India and Yiin - nan is, as I have already 
pointed out, a considerable one, and if this 
trade is to be maintained and increased in 
face of the growing competition of Tongking, 
the advantage given to the Tongking producer 
by the Lao-kai - Yun-nan Fu railway must 
be met. 

It will have been gathered from what has 
been said in previous chapters, that I have 
no great belief in the possibility of attracting 
the trade of more distant regions, such as 
the province of Ssuch'uan, to a Burmo-Chinese 
railway. A line from Hankow to Ch'^ngtu 
would be less than half the length of a line 
from Eangoon to Sui Fu, and would possess 
advantages over the latter which I need 
not recapitulate here. It should not be for- 
gotten, however, that there are promising 
districts in northern Yun - nan itself which 
might easily be reached by extensions of 
railway from Tali Fu ; and it is asserted by 
a much-travelled missionary, M. E. Amundsen, 
whom I had the pleasure of meeting in 
Yiin-nan Fu, that '*it would be a com- 



paratively easy task to build a line from 
Hsia-kuan to Mng-yuan Fu (in southern 
Ssuch'uan), following the Yang-tsze and Ya 
Lung rivers all along, after cutting over 
comparatively level country from Hsia-kuan 
to the Yang-tsze basin. This is the populous 
region of Yiin-nan, and the line would be 
able to tap the great woodlands of Cha-lag 
and Mi-li, through which the Ya-lung and 
Nag-chu flow." 1 

My answer, then, to the question as to 
whether it is desirable to construct a rail- 
way from Burma into Yun-nan is that it 
is. And while I am of opinion that the 
construction of a line from Bhamo as 
far as T'eng Yiieh can be justified on 
commercial grounds alone, I consider that 
the further extension of such a line across 
the very difficult country between T'eng 
Yiieh and Tali Fu can not ; but that in view 
of the political necessities of the case, in 
conjunction with commercial requirements, its 

1 This possibility was not overlooked by the Yiin-nan Com- 
pany's Commission in 1899-1900, though no very detailed 
reconnaissance was made. 


prolongation as far as Tali Fu can be justified, 
and is, indeed, called for. 

There remains the not unimportant question 
as to how its construction is to be brought 
about. I am assuming that the capital re- 
quired could be found, — a not unjustifiable 
assumption in light of the more recent atti- 
tude of the Government of India towards 
the scheme, — and am addressing myself to 
the political difficulties in the way. There 
is no doubt whatsoever that prior to 1900 
a concession could have been obtained from 
the Chinese Government, and in point of 
fact, as late as 1902 the British Minister in 
Peking did extract from Prince Ching the 
admission that Great Britain was entitled to 
equal privileges with France at the hands of 
China, so far as the province of Ytin-nan was 
concerned. A perusal of chapter xix., how- 
ever, should have made it tolerably clear 
that the day of concessions is past, and that 
the Chinese Government, in its present mood, 
is not likely to attach much importance to 
any admission extracted from Prince Ching 
in 1902. Nothing short of force will induce 



China to grant concessions to foreign Govern- 
ments at the present time, and no one knows 
better than China that the last argument 
which the British Government is likely to 
adduce is the argument of force. The extreme 
improbability of railways in this part of the 
world being built by China alone has been 
made clear, and there is, I believe, only one 
way in which the construction of the Bhamo- 
Tali Fu railway can be brought about — if it 
can be brought about at all — within a reason- 
ably near future, and that is by co-operation 
with China on generous terms. When in 
Peking, I had the opportunity of touching 
upon the general question of railway con- 
struction in China in conversation with Yuan 
Shikai. He frankly admitted China's inability 
to raise anything more than a fraction of 
the sums desirable for the purpose of railway 
building from within, but complained that 
foreign Powers demanded too high an interest 
for their loans, and, above all, too stringent 
a control. If foreign Powers were anxious to 
assist in the development of China, they 
must give their aid upon reasonable terms. 


The suggestion that I would make, then, 
is this : that a syndicate, such as the British 
and Chinese Corporation, who have had ex- 
perience in matters of this kind, should be 
approached by the British Government, and 
invited to undertake to negotiate with the 
Chinese Government for the construction of 
the line from the Burmese frontier to Tali 
Fu, the corporation being provided by the 
Indian Government with the surveys and 
other information now in their possession, 
and a guarantee that they themselves will 
construct the section of the line between 
Bhamo and the Burmese frontier. 

During the past five years the British 
and Chinese Corporation have been instru- 
mental in raising the capital necessary for 
the construction of various railways in China, 
such as the Shanghai -Nanking railway, the 
Canton-Kowloon railway, and the Hanchow- 
Ningpo and Tientsin - Pukow lines. The 
general principle underlying the agreements 
in connection with the above railways is as 

1 The loan in this latter case has been floated in co-opera- 
tion with Germany. 


follows : the corporation have contracted to 
raise loans for the construction of the lines, 
and have demanded and received certain 
powers of control on behalf of the bond- 
holders and certain remuneration for their 
services, in addition to a guarantee from the 
Chinese Government as to the payment of 
the capital and interest on the loan. In 
each successive agreement China has de- 
manded and received more favourable terms. 
Thus in the case of the Shanghai-Nanking 
railway, the final agreement for which was 
signed in 1903, the corporation raised the 
loan and built and equipped the railway, 
the Chinese Railway Administration provid- 
ing the land ; whereas in the case of the 
Tientsin-Pukow agreement, signed in January 
1908, the corporation practically confine their 
activities to raising the loan, the construc- 
tion and control of the railway being in 
the hands of the Imperial Chinese Govern- 
ment, though they are bound to select and 
appoint fully qualified German and British 
chief engineers, acceptable to the contractors 
for the loan, for the work of construction, and 


to appoint an engineer -in -chief after com- 
pletion of construction, who, during ths 
period of the loan, shall be a European, 
though without reference to the contractors 
for the loan. 

In the case of the Shanghai -Nanking and 
the Canton -Kowloon railways the loans are 
specially secured by a first mortgage upon 
all lands, materials, rolling stock, buildings, 
property, and premises, with the earnings 
and revenue of the railway ; while in the 
case of the Tientsin -Pukow line there is no 
mortgage on the railway itself, but the loan 
is secured by a first charge upon certain 
provincial revenues. In all cases the loans 
have been provided for by the issue of 
Imperial Chinese Government 5 per cent 
sterling bonds. 

I do not anticipate any objection on the 
part of the British and Chinese Corporation 
to undertaking a loan for a Bhamo-Tali Fu 
railway, provided that they are able to secure 
reasonable terms from the Chinese Govern- 
ment. What would constitute reasonable 
terms is, of course, a matter for the corpor- 


ation to decide ; but I have no reason to 
suppose that an agreement on the lines of 
the Canton - Kowloon agreement would not 
prove acceptable to them. In the case of this 
railway, the corporation agreed to contract 
for a loan of £1,500,000, of thirty years' 
duration. Imperial Chinese Government bonds, 
bearing interest at the rate of 5 per cent 
on their nominal value, being issued for the 
whole amount. The proceeds of the loan 
were restricted to the construction and equip- 
ment of the railway, and to paying interest 
on the loan during the course of construc- 
tion; and the loan itself was secured by 
mortgage, in favour of the corporation, on 
the railway and its appurtenances, and on 
revenue of all descriptions derivable there- 
from. It was agreed that a Chinese managing 
director should be appointed by the Viceroy 
of the province, and that a British engineer- 
in-chief and a British chief accountant should 
be associated with him. Europeans of ex- 
perience and ability were to be engaged for 
all important technical appointments on the 
railway staff. The duties of the engineer-in- 



chief were described as consisting in " the 
efficient and economical construction and main^ 
tenance of the railway, and the general 
supervision thereof in consultation with the 
managing director," and those of the chief 
accountant in organising and supervising 
an accounts department, and in certifying 
all receipts and paj^ments. All the land 
required was to be acquired by the Viceroy 
at the actual cost of the land, and paid for 
out of the proceeds of the loan. The cor- 
poration were granted a fixed sum in com- 
mutation of all commissions to which they 
would be properly entitled in payment for 
their services, and it was further agreed that 
in the event of the Chinese Government 
deciding to raise a further loan for the 
purpose of constructing branch lines, the 
corporation should be given the first option 
for tendering for such a loan. Subject to 
the guarantee and mortgage given by the 
Chinese Government, it was specifically de- 
clared that the railway was "in fact a 
Chinese property." ^ 

^ It will be realised that though the railway is described as 
being "in fact a Chinese property," the corporation does, 


It will be seen from this brief resume 
of the provisions of the agreement that the 
amour propre of China was satisfied by 

nevertheless, possess considerable powers of control. The 
measure of control retained by them under this agreement 
is the least that could be considered satisfactory in the case 
of an agreement with regard to a Bhamo-Tali Fu railway. 
The force of this contention is emphasised by a consideration 
of the action of the Peking Government in the case of the 
more recent Hangchow-Ningpo railway agreement. In this 
case, the moment the loan agreement had been signed, the 
Imperial Government, in contravention of it, handed over the 
construction and control of the line to private companies 
formed in the two provinces of Chekiang and Kiangsu. In 
other words, the Imperial Government having raised a loan 
from the British and Chinese Corporation for the construction 
of the railway on the distinct understanding, embodied in a 
signed document, that the construction and control of the line 
were vested in themselves, proceeded to issue a loan on their 
ownfaccount to private companies for the building of the line, 
at the same time pledging themselves that the line should be 
entirely under private (not official) control. The only under- 
taking of any importance, from an outside point of view, 
which the companies were called upon to make was the 
engagement of a British engineer-in-chief, under the direction 
of their own general manager, until the repayment of the 
loan. In all other respects the line became a purely private 
affair in the hands of the people of Chekiang and Kiangsu. 
It is obvious, therefore, that under similar circumstances the 
Bhamo-Tali Fu line might revert to the status of a purely 
private undertaking in the hands of the student party in 
Yun-nan — a state of affairs which would prove inimical to 
the construction of the railway, and consequently intolerable 
to the Government of Great Britain. 


the distinct understanding that the railway 
was a Chinese property, and was under the 
control of the Chinese ; while the requirements 
of the corporation were met by the appoint- 
ment of a British engineer-in-chief and chief 
accountant with considerable powers, and by 
a Government guarantee as to the punctual 
payment of the principal and interest of 
the loan, backed by specific security in the 
shape of a first mortgage on the railway. 
A similar agreement for the construction of a 
line from Tali Fu to the Burmese frontier 
would, I believe, prove satisfactory to the 
corporation. The question which cannot be 
so easily answered is whether the Chinese 
Government would be ready to come to 
such an arrangement in the case of a rail- 
way in western Yiin - nan. I confess that 
upon this point I entertain serious doubts. 
In the first place, the railways for the con- 
struction of which agreements have already 
been drawn up are lines encountering no 
great physical obstacles, and running through 
densely populated districts dotted with big 
towns. In guaranteeing the loans in these 



cases, China is running no risk of loss, and in 
tlie railways themselves is acquiring assets of 
the first importance. 

The dividend - earning capacity of Chinese 
railways under favourable conditions has been 
proved to demonstration by the Imperial 
Eailways of North China, which, with a mile- 
age of 560 miles, showed gross earnings of 
12,191,188 dollars for the year ending Sept- 
ember 30th, 1906. These figures are all the 
more remarkable when it is understood that con- 
siderable sums are illegitimately extracted from 
the public by employees on the line. Though 
I cannot vouch for the facts myself, I have 
been told upon excellent authority that in one 
case a station-master, with a salary of forty- 
five dollars a-month, was levying a sum of 
fourteen dollars upon every truck -load which 
he sent through, as many as two hundred 
trucks being, on occasion, sent through in a 
day ! There is little doubt that lines like the 
Canton-Kowloon railway and the Tientsin- 
Pukow railway will prove to be equally 
remunerative enterprises. The former is de- 
scribed as running through a "fertile, highly 


cultivated, and densely populated country," 
and as proof of the avidity with which 
the people avail themselves of railway facili- 
ties as soon as they are offered, it is pointed 
out in the prospectus that "the small rail- 
way recently opened between Canton and 
Samshui carried in 1905 2,657,500 pass- 
engers." In the same way the Tientsin- 
Pukow railway is described as traversing 
country "of a highly rich and fertile nature, 
with a teeming population," and it is further 
asserted that this line, "supplying as it will 
do an outlet for the produce of large areas 
now without means of transport, will become 
one of the most important and remunera- 
tive in the empire." 

When all these circumstances are taken 
into consideration, the advantages accruing 
to China from their construction are tolerably 
obvious. No such advantages are likely to 
be forthcoming from the construction of a 
line from Bhamo to Tali Fu. Whatever 
funds were offered by China as security for 
her guarantee — and good security would, no 
doubt, be demanded on behalf of the bond- 

china's obvious objections. 87 

holders — would, for a time at any rate, have 
to be drawn upon. The railway, in other 
words, would not only lack the supreme 
attraction of an enterprise bringing grist 
to the Chinese mill, but would suffer from 
the disadvantage of constituting a drain 
upon existing revenues. Moreover, the hos- 
tility of the student party in Yiin-nan would 
have to be taken into account. The diffi- 
culty of the country through which the line 
would pass would necessitate the employ- 
ment of a far larger number of British 
engineers and foremen than are required in 
the case of the other lines referred to, and 
this fact alone would add to the opposition 
that would be raised in the province itself. 
Confronted with difficulties of this kind, the 
Chinese Government might very naturally 
point out that there are many other lines 
of far greater importance to commerce, and 
of far greater potential value to herself, that 
she is desirous of constructing before embark- 
ing upon so speculative an undertaking as a 
railway across the mountains and valleys of 
western Yun-nan. 


There seems, then, to be little prospect 
of the Chinese Government viewing such 
a scheme as is here suggested with any 
great favour, and unless the British Govern- 
ment have made up their mind that they 
do really desire to have the railway built, 
I think there is little prospect of its seeing 
accomplishment. If, on the other hand, the 
British Government are in earnest in the 
matter, I believe that the suggestions here 
put forward provide the only practical means 
towards the end in view, and I believe 
further, that success, even by these means, 
is only likely to be attained provided that 
the British Government are prepared to bring 
strong and constant pressure to bear upon 
the Chinese Foreign Office. The last sug- 
gestion which I venture to throw out is 
this, that the argument most likely to appeal 
to the Chinese mind is the argument that 
by becoming the owners of a line in western 
Yiin-nan, even if Great Britain takes some 
part in its construction, they will possess an 
asset which will go far to redress the balance 
of power in this remote province, which is 


in some danger of being disturbed by the 
undue influence acquired by France as the 
owner of a railway in the south. 

Perhaps all that can be said in conclusion 
at the present time is, that the long-talked- 
of Burma-Chinese railway has at last emerged 
from the realms of mere academic discussion 
and stands within the range of practical 
politics, and that there is a possibility, 
amounting almost to a probability in the 
event of the British Government entertain- 
ing a strong desire to see it built, that 
steps will ere long be taken to promote 
its actual construction. 




In the course of the narrative of my journey 
across China I have touched here and there 
upon questions of industry and trade. In 
the present chapter I propose to indulge in 
a critical examination of the character of 
the market provided by Western China for 
British commerce. 

The reader who has had the patience to 
follow me so far will be familiar with the 
marked contrast provided by the two prov- 
inces of Yiin - nan and Ssuch*uan. The 
mental picture which he will have of the 
former will be that of a land of rugged 
mountains and valleys, still showing traces 
of seventeen years of relentless revolution 
— a vast province comprising 122,000 square 


miles of hungry mountain, enlivened here 
and there, but not too frequently, by fertile 
and tolerably prosperous oases, and peopled 
with 12,000,000 of scattered and poverty- 
stricken inhabitants ; while his impression 
of the latter will be of a land of fertile 
hills and smiling basins, the home of a 
teeming population of frugal and industrial 
agriculturists. Provided with this knowledge, 
he will at once realise that the essence of 
the commercial problem is covered by the 
answer to the following question — "What 
do the 50,000,000 consumers of Ssuch'uan 
require from the factories of the West, and 
what have they to offer in exchange?" 
As will, perhaps, have been gathered from 
a perusal of the narrative, a journey of 
500 miles from Ch'ung-k'ing to Ch'engtu 
via the salt fields of Tzu-liu-ching, and 
from Ch'engtu via the Min river and the 
town of Chia-ting to Sui Fu, taking one, 
as it does, through some of the richest 
and most populous portions of the prov- 
ince, affords an opportunity of forming an 
opinion from personal observation. 


There are many large towns along the 
route by which I travelled, and in all the 
towns were to be seen many well - stocked 
shops. And the lesson which the shops 
teach is this — that the requirements of the 
Chinese are elementary in kind. One-half 
of the shops are food stores, where the 
curious medley of delicacies that tickle the 
palate of the Chinaman are displayed in 
extravagant profusion. With these the pur- 
veyor of Europe has no concern. Next in 
order come the stores at which are sold 
the stuffs with which the Chinaman clothes 
himself — some silk fabrics of Chinese make, 
but the vast bulk cotton materials; and of 
these latter (and this is the point which 
has not been duly taken into consideration 
by those who have formed, as I think, 
too sanguine an estimate of the possible de- 
mand for Western goods) by far the greater 
part coarse, narrow - width, loosely - woven, 
durable home-made cloth. I quote the fol- 
lowing as an example of an observation 
which is liable to give a false impression of 
the real state of affairs regarding Ssuch'uan 


as a potential market for Manchester shirting. 
" There are many things," writes Dr Logan 
Jack, " of which the Chinese are large con- 
sumers — for instance, there is clothing. . . . 
Now there are no human beings who wear 
more cotton goods to the square inch than 
the Chinese — fold after fold, worn, I regret 
to say, till they are worn out; but, at any 
rate, fold after fold of thick padded cotton 
is added as winter goes on, and they are, 
I should think, among the very best con- 
sumers conceivable of cotton goods." ^ 

This is true ; but the point that is lost sight 
of is this — that the millions of China who wear 
these yards of cotton cloth make for themselves 
a cloth which is eminently suited to their 
requirements and their condition of life, and 
with which the machine - made shirtings of 
Manchester do not and cannot compete. I 
have already given an example of the economic 
advantage which the home-made material of 
Sstich'uan must hold over the imported article, 
in the looms of Wan Hsien.^ The further 

^ Journal R. G. S., March 1904, p. 312. 
2 See vol. i. p. 75. 


economic fact that in many districts almost 
every cottage has its loom, which employs the 
members of the family whenever there does not 
happen to be any other household duty press- 
ing for fulfilment, is one which weighs heavily 
in the scale against the foreign product. 

But the result of many inquiries and con- 
siderable observation has been to satisfy me 
that in this particular line of trade it is not 
even the matter of price — for thin machine- 
made grey shirting can be placed upon the 
market, as a matter of fact, at an astonishingly 
cheap rate — that tells with greatest weight 
in favour of the home-made cloth, but the 
greater warmth, the superior durability, and 
the more convenient width of the latter as 
compared with the former. The masses are 
engaged in a never-ceasing struggle for their 
daily bread. The loosely-woven native cloth 
stretches under stress of the wearer's physical 
exertions, the closely -woven machine-made 
fabric tears ; the hand-made article is heavy 
and warm, the machine-made light and of little 
protection against the elements. Finally, the 
cut of the Celestial's clothes is such that a 


minimum of waste occurs when they are made 
up from the 14-inch wide rolls of native cloth, 
whereas much waste is entailed in cutting up 
the wider cloths of foreign make. The import- 
ance attached to thrift by the Chinese labourer 
in any matter which closely concerns himself 
may be gauged by the fact, already alluded to, 
that the purchaser of a box of Ch'ung-k'ing-made 
matches, necessitating an outlay on his part of 3 
cash, or the fourteenth part of a penny, may be 
seen laboriously counting the number of matches 
in the box, in order to assure himself that he 
is receiving full value for his money, and to 
enable him to discard any matches found with- 
out heads before finally concluding his bargain. 

Perhaps the actual process of purchase as 
explained to me by a Ssuch'uan coolie may 
serve to emphasise the point which I desire 
to bring home — namely, the improbability, 
if not the impossibility, of British shirting 
competing successfully with the native article 
of clothing as far as the masses of China are 
concerned. The purchaser weighs instead of 
measuring the material, and then proceeds to 
bargain as to the price per ounce. The ruling 


price of an ounce of locally made cloth was, 
according to my informant, about 28 cash. 
This works out at from 24 to 25 cash — i.e., 
three-fifths of a penny per Chinese foot. It 
would seem that reductions are to be obtained 
by patient bargaining, for a boatman whom I 
employed on the Min river secured a piece 
weighing 28-^ ounces for 670 cash, or 24 cash 
an ounce, equivalent to 21 cash a Chinese foot. 
At Chia-ting, one of the chief cities in that 
district, a Chinese merchant quoted 28 cash a 
Chinese foot as the price of the lowest quality 
of Manchester grey shirting which he sold, and 
36 cash as the price of his best quality. 

Statistics give point to my contention. The 
amount of foreign grey shirting imported into 
Chung-k'ing in 1906 was 322,804 pieces, or 
a little less than 13,000,000 yards. Allowing, 
for the sake of argument, six yards per person, 
this would suffice to clothe rather more than 
2,000,000 people. From this calculation we 
find that, roughly speaking, 48,000,000 out 
of the 50,000,000 inhabitants of Sstich'uan, 
or 96 per cent of the population of the 


province, are entirely independent of foreign 

Here, then, are tlie two chief items of con- 
sumption in Western China — viz., food and 
the clothing of the poor — wiped off the slate 
as far as the British manufacturer is concerned. 
Where, then, does he come in ? Eeferring to 
a paper by Colonel Manifold, I find the fol- 
lowing articles mentioned as being in much 
demand : " Woollen goods, buttons, needles, 
thread, candles, clocks, lamps, brass-work of 
all sorts. The imports of these and numerous 
other British-manufactured articles will be enor- 
mously increased if better and cheaper means of 
communication are established, and the latent 
resources of the province are developed."^ 
Here, it is true, is a class of goods largely 
purchased by the Chinese. Next to the food 

1 This calculation is avowedly rough ; but it serves to bear 
out my argument. If we allow only three yards instead of six 
per person, it makes no material difference to the argument. 
In that case we still find 92 per cent of the population inde- 
pendent, as far as his clothing is concerned, of the foreign 

2 Journal, E. G. S., March 1904, p. 307. 



shops and the cotton shops, stores displaying 
a bewildering variety of fancy goods — clocks, 
mirrors, lamps, soaps, buttons, toilet-powders, 
belts, glass and china, and enamel ware — are 
the most conspicuous. Such goods find a 
ready sale with all who can afford to buy them.. 
But the clocks come from America, and the 
buttons, and crockery, and enamel ware, and 
perfumes, and scented soaps from Austria and 
Germany, and in ever - increasing quantities 
from Japan and Canton. 

There is, however, a class of goods which 
the British manufacturer provides now, and will 
continue to provide in increasing quantity — 
namely, the finer grades of cotton piece-goods, 
such as plain and figured cotton lastings and 
coloured and black Italians, especially the 
latter, for which there is a large and in- 
creasing demand among the middle classes of 
the population. Manchester shirting, too, 
finds a ready sale among those who are not 
obliged to indulge in manual labour, as being 
infinitely superior in appearance to the coarser 
native cloth. The highest quality of black 
Italians are so beautifully finished that they 



have almost the appearance of silk, and are 
readily bought by the student and merchant 
classes. The difference in price in Ch'ung- 
k'ing between cotton Italians and silk was 
given me by a Chinese importer as follows : 
black Italians of the quality most in demand, 
2d. a square foot; silk, from 8d. to lljd. a 
square foot. The consequent advantage pos- 
sessed by the former over the latter to persons 
of moderate means is amply apparent. It is 
to this class of goods that I look to enlarge 
the importation of British manufactures, and 
let me offer this observation : European retail 
merchants cannot compete with Chinese re- 
tailers in the interior. Time will tend to 
drive the white merchant more and more to 
a limited number of large emporiums, such 
as Shanghai and Hankow, where his business 
will be that of middleman between the manu- 
facturers of Europe and the retail merchants 
of China. But the European can push his 
goods in every part of China by employing 
native travellers, well supplied with a variety 
of samples, whose duty it should be to travel 
over the country, bringing their various quali- 


ties of goods to the notice of the retail 
merchants in the interior, taking orders to 
supply according to sample, and bringing back 
with them reports as to the fashions and tastes 
of the different localities they visit. This 
system has been recently put into practice by 
the Bradford Dyers' Association, who were 
employing when I was in China a staff of 
twenty trained native travellers, who visited 
all parts of the country with their samples 
of piece goods. The Association were at the 
same time unwilling to occupy the position 
of importers themselves, preferring to leave the 
business of supply to the already established 
houses in Shanghai and elsewhere. Their 
system was merely to advertise their goods, 
to give the name of the " chop " or particular 
quality to the retailer, and to leave him to give 
his order through the usual channel. 

Again I can call upon statistics to support 
the contention which I have advanced. The 
importation of cotton Italians via Ch'ung-k mg 
has increased from 43,292 pieces in 1897 to 
191,661 pieces in 1906, while the importation 
of plain grey shirting has dropped during the 


same period from 459,394 pieces to 322,804. 
This contention, I may add, applies to China 
generally, and meets with striking support 
from the Customs returns of recent years. 
Thus, in 1903 the net importation of cotton 
Italians amounted to 1,671,113 yards, and in 
1906 to 3,655,354 yards. 

Looking at trade from an Imperial rather 
than from a purely insular point of view, we 
find a large demand for Indian cotton yarn, 
which is now taken by the people in preference 
to spinning the thread by hand themselves. I 
saw many looms in Ssiich'uan, but scarcely a 
spindle in all the country-side. The import of 
Indian yarn into Ch'ung-k'ing has increased 
from 197,352 piculs (26,313,600 lb.) in 1897 
to 386,669 piculs (51,555,866 lb.) in 1906. 
Japan, who supplies large quantities of yarn to 
other parts of China, has got no foothold here ; 
but mills are springing up with astonishing 
rapidity in China itself, and have recently dis- 
covered the secret of making themselves pay. 
I came across considerable quantities of yarn in 
Ssuch'uan from the Chinese mills of Wu-chang, 
and there is no doubt whatsoever that in this 


particular trade China herself is going to 
supply, to a steadily increasing extent, the 
demand of her own home market. Shanghai 
alone boasts twelve mills, and, including a mill 
in Hong Kong, there are now twenty -eight 
mills in the country, with an aggregate of 
something like 750,000 spindles. The total 
output of these mills is a matter of speculation, 
but it has been estimated by Sir Alexander 
Hosie at approximately 180,000,000 lb., a 
quantity equal to more than half the foreign 
import. It goes to supply the large demand 
for material forming the warp of hand -made 
cloth, and will, in all probability, long continue 
to be used in this way, — in the first place, 
because the demand, which it is well adapted 
to meet, will remain ; and, in the second place, 
because the Chinese cotton from which it is 
spun being a short -staple cotton, it is unsuit- 
able to a process of rapid conversion into cloth 
by means of power -looms. Japan more than 
any other country has felt the competition of 
the Chinese mills, and a leading cotton-spinner 
in that country has recently pointed out that 
while the sales of Chinese yarn in China have 


increased from 170,000 bales in 1903 to 321,675 
bales in 1907, the sales of Japanese yarn in 
China have fallen during the same period from 
277,135 bales to 190,868 bales. The actual 
loss, however, to Japan has not been, in reality, 
as great as these figures might seem to indicate, 
since several of the Shanghai mills have re- 
cently passed into Japanese hands, while a 
considerable number of shares in the Interna- 
tional cotton-mill, and also in Messrs Jardine's 
mill, have also been bought by people of that 

As has been pointed out in a previous chap- 
ter, another competitor has recently entered 
the field in Tongking, the import of yarn from 
that country into China having increased from 
57,733 lb. in 1905 to 1,268,933 lb. in 1906 ; 
and it is, of course, the market of Western 
China that is aff'ected by the intrusion of this 

The exports of Ssiich'uan and Yiin-nan must 
be dealt with in a sentence. They may be 
classed under three heads — (I.) Agricultural and 
horticultural products, (II.) Animal products, 
and (III.) Minerals. Under heading number I. 


come hemp, opium, rhubarb, sugar, and medi- 
cines. Under heading number II., bristles 
and feathers, hides, skins, leather, musk, silk, 
white wax, and wool ; and under heading num- 
ber III., salt and tin. The export of medicine 
has increased in value from 600,056 Hk. Tls. in 
1897 to 1,125,250 in 1906. Sir Alexander 
Hosie, with indefatigable zeal, has drawn up 
a list of 220 varieties which he declares, with 
the exception of a few well-known articles like 
rhubarb and liquorice, are practically — and it 
may be happily — unknown to Western medical 
science." The sugar-cane, which grows prolific- 
ally in some parts of the province, is treated 
by a primitive process with, as I have already 
had occasion to remark, only partially satis- 
factory results. I myself ran out of sugar, 
and was obliged to fall back upon the local 
product. " This sugar very sour, master ! 
was the comment of my intelligent servant 
from the coast. And so it was ; but acidity is 
not the property one looks for in sugar. Hence 
we find this curious state of afi'airs : in a prolific 
sugar-producing country single cubes of foreign 


sugar being sold in the towns as sweetmeats at 
something like six cash a cube ! 

The centre of the salt industry is at Tzu-liu- 
ching. I have given an account of the industry 
in chapter vii., and I need only recapitulate 
here what has already been said. The salt is 
raised in the form of brine from a considerable 
depth below the surface, the method adopted 
being the boring of circular shafts of small 
diameter, which resemble the shafts employed 
in raising petroleum at Baku and other oil- 
fields. The main difference is to be found in 
the working of the system, the motive -power 
used to raise the raw material in the case of 
the oil-wells being invariably steam or gas, 
whereas in the case of the Ssiich'uan brine- 
wells it is supplied by buffaloes, blindfolded 
and harnessed to a huge drum. The single 
steam-engine, imported a year or two ago by 
an enterprising Chinese, lies in ruins, though 
whether its destruction was brought about by 
lack of mechanical skill on the part of those 
told off to put it into use, or by the hostility of 
the manual labour that it was intended to sup- 


plant, I was unable to ascertain. The immense 
possibilities of the salt industry in Ssiich'uan 
are faintly indicated by the fact that even 
under existing conditions the aggregate output 
of the forty districts in which it is carried on 
approximates 300,000 tons a-year. 

Other minerals undoubtedly abound in 
Ssuch'uan and Yiin-nan, as in so many other 
parts of China. Coal deposits exist in abund- 
ance in Ssuch'uan, and, according to Baron von 
Eichthofen, " the same formations which yield 
it in Ssuch'uan appear to occupy a large por- 
tion of Yiin-nan, and indeed to continue unin- 
terruptedly into that province through a broad 
opening between the mountain -ranges which 
enclose the coal basins of Ssuch'uan."^ The tin 
mines of Kuo-chiu-ch'ang in southern Yiin-nan 
are well known, and are said to produce 3000 
tons a-year at the present time,^ while prior to 
the Mohammedan rebellion they are said to 
have had an annual output of 4464 tons.s 
Copper, lead, zinc, and iron exist in the vicin- 

^ ' Ocean Highways,' New Series, vol. i. p. 314. 

2 ' The Far East,' by A. Little, p. 130. 

3 'Keport of the Blackburn Commercial Mission,' part i., 
p. 91. 


ity of Tung-ch'uan in Yiin-nan, and silver, 
according to the officials who conducted me 
over the mint at Ch'engtu, is produced in 
Ssuch'uan at the present time. 

It is impossible, however, to hazard any 
conjecture as to the possible value of the 
mineral deposits of the country without careful 
and systematic investigation by experts, and 
before any such survey is possible a revolution 
in the character of the official classes of China 
will have to take place — still more, before even 
the known mineral resources can be developed. 
The obstruction which Mr A. Little has re- 
cently encountered in his endeavour to come to 
an agreement for working the coal seams in 
the neighbourhood of Ch ung-k'ing speaks elo- 
quently of the immense power of resistance 
still inherent in the ponderous force of Chinese 
official conservatism. 

From the premisses put forward both in the 
present and in previous chapters, we may draw 
the following conclusions : — 

I. That China is in the main self-supporting, 
and that foreign traders can only hope 
to dispose of their merchandise there in 


proportion to tlie new tastes they intro- 
duce, the new wants they create, and 
the care they take to supply what the 
demand really means." ^ 
11. That the foreign trade already thus 
created in Western China, amounting 
to 6f millions sterling at the pres- 
ent time,^ suffers from the follow- 
ing disadvantages — (a) the cost and 
cumbersomeness of transport ; (6) the 
importunity of the tax-gatherer ; (c) 
the restricted purchasing power of the 
people owing to the undeveloped state 
of the country. 
I propose, in conclusion, to say a few words 
upon each of these subjects, not so much with 
a view to inquiring what may be done, under 
existing circumstances, to remove them — this 
has already been done as far as (a) and (c) are 

1 ' These from the Land of Sinim '—Sir R. Hart, G.C.M.G. 

2 The figures for 1906 are as follows : — 

Net value of the trade of Ch'ung-k'ing . £4,772,292 

If II M Meng-tzu . . 1,781,592 

u .( T'engYueh . 230,067 

M M II Ssu-mao . . 37,209 

Total . £6,821,160 


concerned, in the present and in previous 
chapters — but with a view to pointing out the 
extent to which they constitute a drag upon 
the wheels of commerce, and their relative 
importance. ^ 

The cost and uncertainty of transport are un- 
doubtedly hindrances to commerce in Western 
China. The conclusions which must inevitably 
be drawn from the whole of my own experience 
while travelling in those regions find admirable 
expression in an article on the "Inland Com- 
munications of China," (compiled some years 
ago by the China Branch of the Eoyal Asiatic 
Society, and published in vol. xxviii. of the 
New Series of the Journal, in January 1895. 

" The horse-cart," writes the editor, " which in the 
north and north-west of China is the principal means 
of conveyance, has never succeeded in gaining an 
entrance into Ssuch'uan with its steep ascents and 
rapid unfordable streams; and is here represented 
for passenger traffic by the sedan-chair, and for the 
carriage of goods, with the exception of a limited 
number of wheelbarrows, by the backs of men or 
animals, unless where the friendly water -courses 
afford the cheapest and readiest means of inter- 
course. As generally in the south of China, human 


labour has in Ssiich'uan superseded that of the lower 
animals to the largest extent possible, and it may be 
safely said that nothing is done by an animal which 
can by any means be performed by manual labour." 

In the same article the average cost of trans- 
port in Ssuch'uan is given as 360 cash per 
100 li for a package weighing 80 catties, which 
works out at present values at something like 
sevenpence a ton mile. This varies in diiBferent 
parts, and I do not think that I am far wrong, 
taking river transport, coolie transport, and 
transport by pack-animals into count, in giving 
the cost of transport as I have done in chapter 
xix. as varying from 2d. to 8d. per ton mile. 
Freights on mountain railways are apt to be 
heavy, and in the case of the Ceylon railway 
above Nawalapitiya, which was taken as a fair 
example by the members of the Blackburn 
Commercial Mission, amounted to as much as 
4d. and 5d. a ton mile ; and it may well be 
that they were right when they declared that 
" it was doubtful whether a railway would be 
able to transport goods or minerals at a lower 
rate than the pack-animal" — as far, at any 
rate, as some of the suggested lines are con- 


cerned. It must be remembered, however, 
that high freights are not the only drawbacks 
attendant on coolie transport, and transport 
by river junk through gorge and rapid ; there 
are also the drawbacks of loss of time, break- 
age of bulk, and — especially in the case of 
the junk traffic between Ichang and Ch'ung- 
k'ing — uncertainty of delivery. As Sir Alex- 
ander Hosie has said, " Foreign textiles are 
what the Sstich'uanese really want, but the 
heavy freight and the locking up of capital 
caused by a three months' journey from Ichang 
to Ch*engtu by junk militate against their free 
consumption." ^ 

There is no doubt, then, that the present 
imperfect means of transport do constitute a 
serious obstacle to the expansion of trade, ancj 
that until railways are built no amelioration 
in this respect can be looked for. Under 
these circumstances the best hope for British 
traders is to maintain the reputation which 
they undoubtedly enjoy for the high quality 
of the goods which they supply, to study the 
peculiar tastes of the Chinese in the districts 

1 Eeport on the Province of Ssiich'uan, Cd. 2247. 


concerned, and to do all that is possible to 
push the sale of those classes of highly finished 
materials which appeal to the richer portion 
of the population, which are better able to 
stand the tax of heavy freights, and for which 
there is undoubtedly a steadily increasing 

I now come to (b) the fiscal restrictions, 
regular and irregular, which are still imposed 
upon foreign trade. I think that the effect 
of the actual taxes imposed upon imported 
goods may easily be over - estimated. The 
actual imposts levied upon merchandise can- 
not add very materially to the cost of the 
retailed article, and the abolition of all taxa- 
tion could at the best cheapen the products of 
Lancashire looms to the consumer by a very 
few cash. Nor do I believe for one moment 
that it would ever be possible to abolish the 
imposition of taxes. The provincial govern- 
ments in search of sources from which to 
replenish their depleted exchequers will always 
discover methods of evading treaty stipulations. 
The case of transit passes provides an example. 
By Article XXVIII. of the Treaty of Tientsin it 



was decided that on payment of an additional 
50 per cent of the import duty by the im- 
porter, a certificate known as a transit pass 
should be issued to him, granting him exemp- 
tion from all further transit duties. The likin 
duties were doubtless those which the framers 
of the treaty were more especially desirous of 
annulling, but it appears to be clear from the 
wording of the paragraph dealing with the 
matter — "and on payment thereof [the com- 
muted transit duties] a certificate shall be 
issued, which shall exempt the goods from 
all further inland charges whatsoever"^ — 
that they intended the goods to be freed 
from all further taxation of any kind or 
description. This view is further confirmed 
by the wording of Rule VII. of the Trade 
Regulations drawn up between Lord Elgin 
and the Chinese Plenipotentiaries at Shanghai 
on November 8th, 1858, which says that 
''no further duty will be leviable upon im- 
ports so certificated, no matter how distant 
the place of their destination." What happens 
in practice is this : goods sent to the interior 

1 Treaty of Tientsin, Article XXVIII. 


under transit passes escape the likin duties — 
where the likin officials can be induced to 
observe the stipulations of the treaty, that 
is to say, — but are liable at the end of their 
journey to a destination tax known as loti-shui. 
Since the tax is a destination tax, it is held, 
and it has been admitted, that it is not 
technically a breach of any agreement dealing 
with transit duties. I have mentioned this 
because it was brought to my notice by 
Chinese merchants in Ch'ung - k'ing, and 
because it provides an illustration of what 
has been said as to the impossibility of 
abolishing the local taxation of foreign goods. 

What has been a far greater hindrance to 
trade, however, than the actual imposts levied 
is the attitude towards the traders of the 
officials interested in the exaction of dues. 
" The shadow of the tax-gatherer," wrote the 
members of the Blackburn Commercial Mission, 
"is over all, and the incalculable trade possi- 
bilities of every port in China are kept in 
abeyance by the licence of a privileged few." 
Enormous abuses have existed, and no doubt 

"the shadow of the tax-gatherer." 115 

still to some extent continue. Transit passes 
have been ignored, and trade has been re- 
stricted and harassed at every turn by an 
army of exacting officials. Still, there are 
evidences of improvement in this respect. 
In southern Yiin-nan France has forced recog- 
nition of transit passes and sternly — and suc- 
cessfully — fought abuse, while strong steps 
have also been successfully taken by British 
consuls to secure to traders their rights in 
the western portions of that province ; and 
the result of my inquiries goes to show that 
years of patience and reams of diplomatic 
correspondence, backed by energetic action on 
the part of consular officials in the interior, 
have done much to lighten the tyranny and 
oppression of the likin system. 

There remains the last point which I have 
mentioned — namely (c), the restricted pur- 
chasing power of the people. This, in my 
opinion, is incomparably the greatest obstacle 
in the way of any considerable expansion of 
trade. "A hand-to-mouth existence is the 
normal condition of the vast bulk of the 


population of China," ^ and this condition is 
due to the backward state of the industrial 
development of the country. As long as the 
purchasing power of the people is so restricted, 
their demand will be confined chiefly to the 
necessaries of life, and these, as I have been 
at pains to point out, are produced in the 
country itself. The Chinese will buy readily 
enough if they have the means; they will 
acquire the means when the latent wealth of 
their country is worked up into exports. 
The trade returns between Great Britain and 
China provide ample demonstration of this. 
In 1907 China took from Great Britain goods 
to the value of rather more than £12,000,000, 
while she was only able to send to Great 
Britain in exchange goods to the value of 
under £3,500,000,^ showing an adverse balance 
for a single year of £8,500,000. When the 
whole of her foreign trade is taken into con- 
sideration, the adverse balance is not so great 
as it is in the case of her trade with Great 

^ Consular Report on the Foreign Trade of China for 1906 
(Cd. 3727—26). 

2 Annual Statement of the Trade of the United Kingdom 
with Foreign Countries, 1907. (Cd. 4150.) 


Britain alone ; but it is very considerable, lier 
net imports exceeding ber exports by 43 per 
cent in 1904, by 97 per cent in 1905, and 
by 74 per cent in 1906. Much has been done 
by British merchants to assist the Chinese 
in this respect. In the provinces with which 
I am more especially concerned, Mr Little has 
built up a considerable export trade in feathers 
and bristles, much to the advantage of the 
people, and has made laborious attempts to 
persuade the officials to allow him to open 
up mines. In Kansu, to take another example, 
the British firms at Tientsin have built up, 
in face of no little opposition on the part of 
Chinese officialdom, a valuable export trade in 
skins and hair, thereby largely increasing the 
purchasing power of the people, and conse- 
quently the trade of Tientsin. But before 
China can become the commercial El Dorado 
of which we sometimes hear, she must shake 
herself free of the policy of burying her talents 
in the ground, and must learn to herself make 
use of the enormous mineral wealth which at 
present lies neglected in the earth. 

If I have painted a less glowing picture of 


the prospects of Anglo-Chinese trade than is 
customary with writers on this topic, I have, 
I hope, given sufficient reasons in justification 
of my views. I have dealt with the question, 
to the best of my ability, from the point of 
view of the present and of the immediate 
future, and have been content to give a mere 
indication of what may take place in that 
future, more or less remote, when the whole 
structure of Chinese Society will have adapted 
itself to the conditions of modern industrial 
life. The possibilities of such an epoch, with 
China as a first-class industrial Power, have 
been faintly suggested in the opening pages 
of chapter ii.; in the present chapter I have 
endeavoured to remember that that epoch has 
not yet dawned, and to grapple with the hard 
and passionless facts of the present, rather than 
to revel in imaginary if fascinating excursions 
into the future. 



" The Kingdom of Heaven is compared, not to any great Kernell 
or Nut, but to a Grainc of Mustard-seed ; which is one of the least 
Graines, but hath in it a Property and Spirit, hastily to get up and 
spread. So are there States, great in Territorie, and yet not apt to 
Enlarge, or Command ; And some, that have but a small Dimension 
of Stemme, and yet apt to be the Foundations of Great Monarchies. 

" Many are the examples of the great oddes between Number and 
Courage : So that a man may truly make a Judgement : That the 
Principal Point of Oreatness in any State, is to have a race of Military 
Men." — Francis Bacon : Of the true Greatnesse of Kingdomes and 



The conversion of the people of Japan from 
the unyielding conservatism of centuries to 
the advanced liberalism of the present day 
provides one of the most remarkable pheno- 
mena as yet recorded in the pages of world 
history. The sudden and dramatic volte-face 
of the leaders of the restoration from an 
unbending policy of rigid exclusion to an 
advocacy of Western intercourse and Western 
ways, threw open the flood-gates to an eddying 
vortex of innovation and reform, and relegated 
the old order irrevocably to the dusty limbo 
of the past. With an energy as impetuous 
as it had been long delayed, the venerable 
garments of a supreme antiquity were thrust 

122 japan's place in the far east. 

violently aside, and from the seclusion of 
unnumljered centuries emerged a new and 
wholly unknown Power — an Eastern nation 
clothed in the culture and the armour of the 
West. In the twinkling of an eye a novel 
figure had flashed comet -like on to the stage 
of human thought and action, creating new 
problems and imparting unforeseen direction 
to the march of world progress. 

It is, doubtless, to her prowess in the field 
of war that contemporary opinion assigns the 
proud position which Japan has carved out 
for herself in the Parliament of man. War, 
indeed, bulks largely in the pages of her 
modern history. The unhappy juxtaposition 
of conflicting interests, the ever - increasing 
friction between East and West, and the 
growing aggression and ambitions of rival 
Powers, set blazing the touchstone of human 
passions and lit up the passage from the 
nineteenth to the twentieth century with the 
devouring fires of war. For ten years a 
succession of plots and counter - plots, of 
intrigues and the resounding clash of arms, 
marred the intercourse between Russia, China, 


and Japan, while incidentally causing rude 
interruption to the stately and passionless 
course of Korean progress. There was a 
touch of grim humour in the destiny which 
decreed that in return, that small and insig- 
nificant country should launch her Western 
neighbour upon the humiliating tragedy of 
the Sino-Japan conflagration, and should ring 
up the curtain also upon the yet fiercer and 
more passionate drama wherein were played 
out before an astonished world the successive 
scenes in the downfall of Russian Imperialism 
in East Asia. With her superlative attain- 
ments in duplicity, and her unalterable 
predilection for intrigue, she may be equally 
counted upon to add immeasurably to the 
tangles of any political skein, and to render 
infinitely laborious the suzerain duties and 
responsibilities now devolving upon Japan. 

With her triumphant emergence from so 
strenuous a period of probation, it may justly 
be said that Japan has cut her way to power 
with the bayonet and the sword. She has 
indeed achieved much more than will be 
found within the four corners of any written 

124 japan's place in the far east. 

treaty. When she pricked the bubble repu- 
tation of Chinese military precocity, she 
excited the interested curiosity of the West ; 
when she flung upon the boards of the 
Manchurian stage the torn and crumpled 
fabric of Eussian Imperial ambition, she 
demanded and received the respect and the 
recognition of the World, for her claims 
to rank, henceforth, as the first Power in 

There was not a village in Japan which 
had not recently welcomed home a little 
band of heroes when I set foot on her shores 
in the early summer of 1906. Each small 
hamlet had erected a triumphal arch as an 
expression of its gladness and a mark of its 
victories in the great war. Country folk 
flocked to Tokyo in large numbers to gaze 
curiously, in their child -like Japanese way, 
at the monster cannon and the piles of small 
arms and ammunition taken from the Russians, 
which were exhibited during the summer 
months in the great park outside the palace 
of the Mikado. In one or two places triumphal 
arches, slightly enlarged editions of the village 


arches, were to be seen — though these were 
to be demolished after a brief existence, lest 
they became a cause of offence to foreign 
residents and visitors. 

Yet despite these symptoms of national 
rejoicing at great victories won, there was 
little in Japan to suggest that it was the 
home of a great military people. The capital 
itself is the very reverse of imposing. With 
the exception of a few hideous monstrosities 
of red brick, which have been built of late 
years to accommodate various branches of the 
Government service and a few of the greater 
lights in the business world, there are no 
buildings with any pretensions to greatness. 
Tokyo is, in fact, as Count Okuma described 
it to me in conversation, " a mere aggregation 
of villages." Its houses are of wood and paper, 
and one storey in height, and so small a matter 
are they, that I remember seeing the whole 
of one side of a street of houses being taken 
up bodily and dumped down again thirty 
yards farther back in order to make room for 
an additional tram line. " Yedo has greatly 
disappointed us," wrote Margary in one of his 

126 japan's place in the far east. 

letters. " We went up by the railway and 
spent the whole day running about Yedo in 
a funny little hand-carriage called a * gin-rick- 
a-sha.' This is a modern invention emanating 
from the native brain entirely." Every one who 
goes to Tokyo spends his time running about 
the town "in a funny little hand - carriage 
called a * gin-rick-a-sha,' " and every one is 
disappointed — every one, that is, who expects 
to find in it anything in any way comparable 
to what would be styled in Europe a great city. 
It has a charm of its own ; but it is quite 
innocent of the impressiveness of a city of 
soaring buildings and stately esplanades. 

Nor is there any ostentatious display of 
militarism. To the European eye the very 
stature of the people is far from suggestive 
of military exploits, and is; indeed, on first 
acquaintance, very liable to deceive. Oddly 
enough, it was a military attache fresh from 
St Petersburg who exclaimed on seeing a 
body of Japanese soldiers in the streets of 
Tokyo — " Why ! a handful of Russians would 
walk through them." This, needless to say, 
before the plains of Manchuria had revealed 

"the oriental disregard for death." 127 

the unsuspected power hidden away in the 
Japanese frame. 

Many attempts have been made to explain 
the magnificent successes of the Japanese as 
a military nation. I have touched upon the 
military traditions of the upper classes in 
chapter i. Their almost superstitious adora- 
tion of their emperor, and their intense love 
of their country — patriotism in its highest 
form — are powerful factors towards the 
achievement of success in war. Their im- 
mense capacity for paying attention to min- 
ute detail in military organisation, in which 
respect, as in many others, they much resemble 
the Germans, is likewise an attribute of success ; 
but there is another powerful influence, a 
metaphysical influence, which would probably 
be described vulgarly as " the Oriental dis- 
regard for death." It would certainly seem 
that the average Japanese can contemplate 
death with feelings of less aversion than can 
the average European. The authenticated 
cases of men preferring death to ignominy 
of any sort are legion, and indeed it was one 
of the cardinal articles of that little understood 

128 japan's place in the far east. 

philosophy, which is spoken of as hushidOy 
that death was, under all circumstances, to 
be preferred to shame. "The hushi (knight) 
always carried with him a pair of swords — 
a long one and a short one. The swords were 
* his soul,' as the old proverb put it, and 
their use was to defend his honour. When 
attacked by his enemy, he defended himself 
with the longer sword ; when an attack was 
made on his honour, and he could protect it 
in no other way, he was taught to prefer 
death to a tarnished name, and to seek in 
seppuku (suicide by disembowelment) a refuge 
from the taint of dishonour." ^ Innumerable 
proofs of the living force of bushido were 
furnished by the war — such, for example, as 
the case of a non-commissioned ofi&cer, Sergeant- 
Major Washi, who committed seppuku on the 
deck of the Kinshu Maru when it became 
clear that there was no alternative but sur- 
render ; and the speech of Lieutenant - Com- 

^ From an article entitled " Bushido " in the second number 
of a periodical dealing with the Eusso-Japanese War, pub- 
lished by the Kinkodo Publishing Company in Tokyo. 


mander Yuasa to his men when on the point 
of undertaking a dangerous attack has before 
now been quoted as being inspired by the 
highest teaching of bushido. "Let every 
man," he said, set aside all thought of 
making a name for himself, but let us all 
work together for the attainment of our 
object. It is a mistaken idea of valour to 
court death unnecessarily. Death is not our 
object, but success ; and we die in vain if we 
do not attain success. If I die. Lieutenant 
Yamamoto will take command, and if he is 
killed you will take your orders from the 
Chief Warrant - Officer. Let us keep at it 
to the last man until we have done what we 

It must, I think, be admitted that a moral 
force inculcated by the teaching of an admir- 
able philosophy of chivalry known as bushido 
does exist among the Japanese, which is 
capable of imbuing them with what would 
be expected to be the characteristics of 
*' scientific fanatics." Their disregard for 

1 Ibid. 


130 japan's place in the far east. 

death is, however, due in all probability to an 
accumulation of causes, and not to one cause 
alone. The worship of ancestors is, I believe, 
responsible to no small extent for the atti- 
tude of the average Japanese towards life 
and death. I do not pretend for a moment 
to have any real conception of the actual 
beliefs of the average Japanese mind upon 
the problems of the spiritual world and an 
after life ; but this at least appears to be 
certain, that the presence of the spirits of 
the dead is to the Japanese in very truth 
a reality. Admiral Togo gave public thanks, 
in sight of all the world, to the spirits of 
the Imperial ancestors for victories achieved, 
and on one occasion I witnessed an inter- 
esting ceremony of the same description. 
A long line of robed and mitred priests 
marched in procession to an open space in 
the Ueno Park in Tokyo. Here an enclosure 
had been arranged with seats all round and 
an altar in the centre. The banners carried 
in the procession were set up, and the 
priests grouped themselves before the altar. 
A charcoal brazier burned upon it, and the 



head priest led some sort of service.^ To 
me the most interesting part of the pro- 
ceedings came at the end, when various lay- 
men stepped forward and, throwing a pinch 
of incense upon the brazier, each in turn 
addressed a few words to the spirits of 
those from Tokyo who had fallen in the 
war. A city official, a leading merchant, 
an officer in uniform — all came forward to 
make a short address to the spirits of their 
departed friends. 

But one also finds what appears to be 
a reckless waste of life. It is by no means 
uncommon to hear of people throwing them- 
selves into the craters of volcanoes, and 

^ It is remarkable testimony to the hold which ancestor- 
worship has upon the people of Japan that Buddhism, 
which is in reality antagonistic to it, should have been 
compelled to yield to the belief of the people and adapt 
itself to the national practice. The introduction of Western 
civilisation has in its turn failed to modify the custom, 
and Professor Nobushige Hozumi declares that "the three 
foreign elements — Confucianism, Buddhism, and Western 
civilisation — all of which have had an immense influence 
upon our laws, manners, and customs, and two of which 
were diametrically opposed to ancestor -worship, could not 
make way against, nor put an end to, the widespread and 
persistent faith of the people." 

132 japan's place in the far east. 

during the few days that I spent at Chuzenji 
a young man committed suicide by throwing 
himself over the celebrated waterfall of Kegon- 
no-taki, the reason assigned for this wilful act 
being a failure on his part to pass a certain 
examination. Can this disregard for life be 
due to physiological reasons — a lower vitality, 
a less highly-strung nervous organism, and 
a consequent absence of apprehension of the 
terrors of death? Perhaps it is a combina- 
tion of all these which renders the soldiers of 
Japan impervious to the fear of death, — in 
itself one of the characteristics which make 
them so formidable in battle. 

I have said that there is no ostentatious 
display of militarism. Only once during the 
whole of the summer of 1906 did I see 
any considerable military display. The occa- 
sion was a special one, held to mark the 
conclusion of peace at the end of a great 
war. It took the shape of a review of 31,000 
troops from the seat of war, held by the 
Mikado in person, and is worthy of a brief 

The quiet of early morning was broken by 



the heavy booming of big guns rolling sonor- 
ously through the air, and awaking respon- 
sive echoes in remote corners of the city, 
on April 30th, 1906, — a welcome indication 
to the vast concourse of people gathered 
in the capital that day had dawned fair, 
and that nothing stood in the way, there- 
fore, of the successful carrying out of the 
prearranged programme. Little need was 
there, indeed, of the thunder of guns to 
herald forth the news, for the sun shone 
gloriously from a cloudless sky, and from 
early dawn expectant crowds of men and 
women streamed joyously westward to the 
Aoyama parade - ground, where were drawn 
up from an early hour the pick of the 
victorious Manchurian armies. Upwards of 
31,000 men, fresh from the triumphs of the 
Yalu, Port Arthur, Mukden, and Liao Yang, 
and representative of every regiment in 
Japan, stood massed in serried ranks, — an 
epitome of the military genius of a people 
borne to the forefront of the nations upon a 
flood-tide of military achievement. 

The vast gathering of spectators, banked 

134 japan's place in the far east. 

in dense crowds on every side of tlie dusty 
expanse, awaited patiently the arrival of the 
Emperor. A pleasurable anticipation of things 
to be bridged over a prolonged period of 
delay, and when at length to the strains of 
martial music a company of dusky lancers 
clattered on to the ground, heralding the 
arrival of the royal procession, the whole vast 
assemblage swayed forward as one man in 
profound obeisance to the heaven-descended 
ruler of Japan. 

A large force of men answering with 
machine -like precision to a single word of 
command is always an impressive sight : 
here, as column after column of khaki-clad 
warriors passed in never - ending procession, 
each headed by a man bearing a name of 
world-wide fame — Oyama, Nogi, Kuroki, Oku, 
and many more — the chords of memory were 
strangely stirred. To the spectator from the 
West, accustomed to the variegated brilliance 
of a full-dress military parade, the absence 
of all colour provided a noticeable feature, 
artillery, cavalry, and infantry being decked 
alike in identical uniforms of sombre khaki. 


A single figure in scarlet, conspicuous amid 
the general monochrome, alone gave colour 
to the scene, — the British military attache, 
solitary representative of Europe in all the 
brave array. His presence there, surrounded 
by the generals of Japan, was significant 
of many things, — of the newly - knit ties, 
binding in close alliance the island empires 
of East and West; of the strange moves, 
too, which Destiny indulges in, in the great 
game which finds a stage in the chess-board 
of the world. 

Japan had accomplished great deeds in war; 
but the wine of success had not turned 
the heads of the body of quiet, strong- 
willed, far-seeing men responsible for her 
military organisation. They set themselves 
resolutely to work to remedy such defects in 
organisation as had been disclosed by the 
war, and to add additional divisions to the 
existing army.^ And two years later we 

1 After the war it was proposed to raise the strength of 
the army to twenty-four divisions. At the instance of the 
late General Kodama, however, this figure was reduced to 
twenty-one, and it has now been still further diminished 
to nineteen. 

136 japan's place in the far east. 

find the Minister of Finance giving utter- 
ance to the theory, which curiously enough 
found expression in Germany about the same 
time/ that expenditure upon armaments need 
not necessarily prove unproductive. " Had 
the Japanese army possessed two more divi- 
sions at the Battle of Mukden," he declared 
to a deputation from the United Chambers 
of Commerce in June 1908, "the issue of 
the fight would have been so conclusive 
that the collection of a large indemnity 
might have been possible " ; and the depu- 
tation admitted that a military force of 
nineteen divisions and a navy of 600,000 
tons were essential to the safety of the 

1 In a pamphlet entitled * Die Finanzen der Grossmachte,' 
by Dr Friedrich Zahn, President of the Bavarian Statistical 

2 Nevertheless the financial policy of the Government con- 
tiiuied to excite the hostility of the business classes, and in 
spite of the fact that the General Election held during the 
summer gave Marquis Saionji as head of the Seiyu-kai a work- 
ing party majority in the Lower House — a state of aflfairs 
witnessed now for the first time in the history of constitutional 
government in Japan — this hostility on the part of the mer- 
chants and manufacturers eventually induced the Prime 
Minister to tender his resignation. Party government as it 


It need hardly be said that as a fighting 
machine the Japanese navy is fully as inter- 
is known in England does not exist in Japan, a change of 
Ministry calling for no alteration in the constitution of the 
Lower House, and on the resignation of the Saionji Cabinet, 
Marquis Katsura, a non-party man, who had been Prime 
Minister during the war, assumed the reins of office. At the 
end of August the new Ministry published a financial pro- 
gramme involving curtailment of expenditure to the extent of 
£20,000,000, of which 30 per cent was to be taken ofi" the 
army and 10 per cent ofi" the navy estimates. The main 
features of the programme were summarised by the Tokyo 
correspondent of 'The Times' in its issue of August 31st as 
follows : " First, the defrayal of all outlays from ordinary 
revenue ; secondly, the extension of the six years' programme 
of armaments and execution of public undertakings to eleven 
years ; thirdly, the abstention from all loans during that period ; 
fourthly, the increase of the yearly redemption of the national 
debts to a minimum of £5,000,000 ; fifthly, the exclusion from 
the programme of all future surpluses from ordinary revenue, 
although such surpluses will certainly accrue ; sixthly, the 
placing of all State railways to a special account, and the 
devoting of the entire profits to extension and improvements 
during the first three years, after which the profits will be 
supplemented by the floating of domestic bonds, the sale of 
which is to be an exception from the rule of abstention from 

Apart from the postponement of the Tokyo Exhibition, 
which was to have been held in 1912, but for which the Gov- 
ernment declare adequate arrangements cannot now be made, 
the financial proposals herein set forth are said to have been 
hailed with general satisfaction. 

138 japan's place in the far east. 

esting a study as the Japanese army, — to the 
people of Great Britain the more interesting, 
perhaps, of the two. Nowhere, indeed, is 
the effect of the war upon Japan more patent 
than in her great naval yards, nowhere does 
the strength and magnitude of her ambition 
find more cogent demonstration. The posses- 
sors of an island empire, the statesmen of new 
Japan have not been slow to recognise the 
value of a strong navy and a powerful and 
numerous mercantile marine. Under a system 
of shipbuilding and ship-running bounties her 
merchant shipping has made huge strides, 
and the advocates of State aid, in return, • 
under given circumstances, for State control, 
may point confidently to the successful trans- 
portation of troops in time of war in justifi- 
cation of their policy. During the late war a 
single company, the Nippon Yusen Kwaisha, 
were able to place at the disposal of their 
Government 250,000 tons of shipping, with 
which they successfully carried to and from 
the seat of war upwards of a million and a 
quarter men, 124,000 horses, and close upon 
two million tons of stores. Under the same 



paternal encouragement tlie displacement of 
the steamers of her mercantile marine aggre- 
gated, at the end of 1906, 1,394,745 tons, 
— an increase in ten years of 4831 vessels 
(steamers and sailing - vessels) with a dis- 
placement of 907,836 tons.^ 

But striking as these figures are, and loud 
as is the tale of destructive competition of 
Japanese bottoms in Chinese waters, the tale 
of the great naval arsenals and dockyards is 
even more significant. A visit to Kure is in- 
deed little less than a revelation. Armed with 
an official permit which read, " Kure arsenal 
and dockyards except the armour works," I 
approached the main entrance in the wall 
surrounding the entire works, and received 
immediate admittance from the sentinel on 
guard. The first glance tells you that you 
are in the presence of a spirit of imperious 
energy and indomitable will. The man of 
" blood and iron " would have smiled approval 
here. You are brought abruptly face to face 

^ These figures do not take into account the sailing-vessels 
known as hohii vessels — i.e., vessels of small tonnage. At 
the end of 1906 there were 21,920 of these vessels, having 
an average capacity of slightly less than 12 tons. 

140 japan's place in the far east. 

with one of the startling contrasts of the East. 
Outside the wall fragile houses, old - world 
courtesy, laughing children, sleepy temples, 
leisurely priests, and smiling women, — all the 
recognised ingredients of quaint, fantastic, 
orthodox Japan. Inside the clash and clang 
of iron upon steel, the roar of machinery, and 
the hiss of steam, all the bewildering equip- 
ment for the forging of machines designed for 
the destruction of human life, vast piles of ugly 
scaffolding, toiling masses, and a ten hours' 
day ! Eleven years ago the naval yards at 
Kure came into existence, the offspring of 
the war with China ; to - day they provide 
employment for 30,000 men, and are capable 
of building battleships the equals of any now 
afloat. They are complete and self-sufficing 
in every detail. They turn out everything 
connected with the construction of battleships, 
from a rivet to a 12-inch gun. 

Prior to the late war nothing beyond a third- 
class cruiser of three or four thousand tons had 
been attempted, but the war gave great im- 
petus to Japanese naval construction, and in 
January 1905 the keel of the first large cruiser. 


the Tsukuha, was laid down. To-day I saw 
her all but completed in her dock at Kure, a 
powerful first-class cruiser of 13,750 tons. A 
little way off lay her sister ship, the Ikoma, 
though not quite so far advanced. But 
Japanese ambition has not stopped here. 
Two vast battleships, the Satsuma and the 
Ahi, are now under construction at Yokosuka 
and Kure respectively. Not even the Dread- 
nought, the latest pet of the British navy, 
will boast superiority to these monster engines 
of war. With a displacement of 19,000 tons, 
a speed of 19 knots, and an offensive armament 
of four 12-inch and twelve 10-inch guns, they 
will meet with few equals upon the sea. And 
while poor, impoverished, heavily burdened 
Japan is adding ships to her navy and regi- 
ments to her army, the plausible pundits who 
mismanage the affairs of rich, luxurious, affluent 
England preach pious platitudes from the 
Treasury bench on the beauty of perpetual 
and universal peace, and, childishly happy in 
their belief in the immediate advent of the 
millennium, hasten to cut down the armaments 
requisite for Imperial defence. 

142 japan's place in the far east. 

I doubt very much whether it has been 
generally realised in England how immensely 
superior is the Japanese fleet of to-day to 
the fleet which achieved such memorable suc- 
cess in the late war. At the commencement 
of hostilities Japan possessed a fleet of less 
than 300,000 tons, made up as follows : — 



in tons. 




Armoured cruisers . 



Other cruisers . 






Torpedo-boats . 



Total . 



During the war she lost two battleships, the 
Hatsuse and the Yashima, eight cruisers, two 
destroyers, and seven torpedo-boats, or nineteen 
vessels in all, with a displacement of 46,616 
tons, leaving her with a fleet of 237,126 tons. 

When I visited her naval yards I found con- 
struction being pushed forward at a rapid rate, 
which seems to have been continued during 
the past two years, the number of craft built 
in her dockyards from the beginning of the 


war up to the spring of 1908 being forty- 
nine, with a displacement of 113,550 tons, as 
follows : — 

in tons. 

The Aki . First-class battleship 

. 19,060 

ine batsuma „ „ 

. 19,060 

The Kurama First-class armoured cruiser 


The Tsukuba 

. 13,750 

The Ikoma . 

. 13,750 

The Ibuki . 

. 13,000 

Total, First-class cruisers and battleships 

. 93,220 

Five small cruisers .... 

. 7,000 

Thirty-three destroyers 

. 12,570 

Five torpedo-boats .... 


Total, all craft 

. 113,550 

But this is not all. Shortly before 

my visit 

two first-class battleships, the Kashima (16,430 
tons) and the Katori (15,980 tons), had arrived 
from England, and the ships captured from 
the Russians were rapidly being repaired and 
made ready for sea. These captured ships 
numbered twenty-one, with a displacement of 
135,540 tons, as follows : — 

144 japan's place in the far east. 


The Iwami (Orel) . 
The Sagami (Peresviet) 
The Tango (Poltava) 
The Hizen (Retvizan) 
The Sue (Pobieda) . 
The Iki (Nikolai 1.) . 
The Aso (Bayan) 
The Tsugaru (Pallada) 
The Soya (Varyag) . 
The Okinoshima (Apraxin 
The Mishima (Seniavin) 
The Suzuya (Novik) 
The Manshu (Manchuria) 
The Anegawa (Angara) 
The Kanzaki (Kazan) 
The Matsuye (Sungari) 
The Yamahiko (Reshitelni) 
The Satsuki (Viedovi) 
The Fumizuki (Silnui) 
The Shirinami (Gaidamak) 
The Makigumo (Vosadnik) 

Battleship \ 

in tons. 



Destroyer \ 




At the present time, therefore, Japan has 
fleet of 210 vessels, with a displacement of 
518,626 tons, as follows: — 

japan's naval programme. 145 



in tons. 




Armoured cruisers 

1 o 


1 on rioo 

Other cruisers 









Grand total 

. 210 


It must not be supposed, however, that she 
is satisfied with this. The Japanese admiralty 
have decided upon a large scheme of re-arma- 
ment, the 6-inch guns on existing ships being 
abandoned in favour of a smaller number of 
10 -inch guns. The 10 -inch gun appears to 
be a favourite one with the Japanese naval 
authorities, and I recall with interest an ob- 
servation let fall by the naval officer who 
escorted me over the yard at Kure, that in 
his opinion a greater effect could be produced 
by an armament of 10-inch than 12-inch guns, 
owing to the greater number of the former 
which it was possible to mass on a vessel, and 
the superior rapidity with which they could 
be fired. With the monster ships, however, 
which are now proposed, these considerations 
do not appear to carry weight, for it is said 


146 japan'.s place in the far east. 

that arrangements are rapidly progressing for 
the construction of four mammoth vessels — 
i.e., two battleships and two cruisers, each 
carrying enormous armaments of 12-inch guns. 
According to details published in the Japanese 
press, the two cruisers will have a displacement 
of 18,650 tons, a horse-power of 44,000, and 
a speed of 25 knots. Their armament will 
consist of ten 12 -inch, ten 4 7 -inch, and a 
number, as yet uncertain, of 6 -inch guns. Of 
the two battleships, one is to be laid down at 
Yokosuka during July (1908), and the other 
at Kure before the end of the year. They are 
to have a displacement of 20,800 tons, a speed 
of 20 knots, armour of 12 inches, and a prin- 
cipal armament of twelve 12-inch guns. Truly 
a formidable programme for a Power heavily 
burdened with debt due to war, and one which 
must be read in the light of the declaration 
of the Finance Minister already alluded to, 
if its significance is to be appreciated and 

Let me return for a moment to my visit 
to the dockyard. Not far from the newly 
constructed Japanese ship lay an erstwhile 


Russian ship, the Orel, now known as the 
Iwami, — no longer the grimy battered wreck 
that had escaped annihilation only by sur- 
render, and been escorted by Japanese cruisers 
from the fiery hell of Tsushima to Maizaru, 
but a trim and useful addition to the navy 
of Japan. The last act played by the Orel 
in the passionate drama of the Sea of Japan 
has been painted in lurid colours by eyewit- 
nesses of the scene— a scene which portrays in 
all its ghastly horror the hideous reality of 
modern war. A third of the crew lay dead or 
wounded, the cries of the mutilated and the 
dying rose shrill above the storm of shot and 
shell, until human nerves broke down beneath 
the terrible ordeal, and panic and demoralisa- 
tion reigned supreme. Down into this frenzy 
of human suffering and despair came the callous 
order from the conning-tower — " Dispose of the 
wounded." The order was ruthlessly obeyed. 
" The work was carried out principally by petty 
officers, and no mercy was shown. Men were 
picked up and cast into the sea like so much 
useless ballast. , . . The scenes that preceded 
the capture of the battleship were indescrib- 

148 japan's place in the far east. 

able, the sea being dotted with wounded men 
struggling to keep afloat." ^ 

Thus vanished from the face of the waters the 
great Kussian Armada that had sailed proudly 
half-way round the world to meet its doom. 

I passed out through the great wall, away 
from this valley of the shadow of death," 
into the sunshine and the joyous, sparkling 
life of every-day Japan. The sun shone and 
the children prattled, but from behind the wall 
came with steady insistence a muffled clang 
from hammers that rose and fell. Yes, Japan 
is a fighting nation : the Samurai's sword is 
his soul. 

1 From a description of the naval battle of the Sea of 
Japan, published by the Eisho Shuppan Sha. 




In the last chapter I have laid stress upon 
the strenuous side of modern Japanese life. 
Not even the bewildering succession of changes 
of the past half century, however, has been 
able to obliterate all landmarks from the 
past. Religion, the great conservative force 
in every land, swears undying allegiance to 
Old Japan, and in many a tomb and stately 
monument rears imperishable altars to a 
majestic past, while away in the heart of 
Hondo the traveller may still breathe in the 
subtle atmosphere which has for all time 
enveloped " the land of the gods." 

Your first excursion in Japan is inevitably 
by rail. It is probably from Yokohama to 

160 japan's place in the far east. 

Tokyo, a short journey of half an hour or 
forty minutes through the series of suburbs 
which lie between the seaport and the capital. 
You will probably rave over the plum-blossom 
or the wisteria or the cherry-blossom, according 
to the time of year at which you land, and you 
will assuredly lose your heart to the quaint, 
lovable children and the little maids carrying 
baby brothers or sisters nearly as big as 
themselves upon their backs. When the train 
steams into the Shimbashi railway station and 
empties itself of its human freight, you listen 
in delight to the novel sound of hundreds of 
pattering geta upon the platform, suggestive 
of nothing so much as the thrumming rever- 
berations of some monster xylophone. 

The Japanese railways are narrow - gauge, 
and prolonged journeys over them, especially 
during the hot summer months, soon become 
irksome, for which reason, if for no other, the 
visitor who is not in a tearing hurry to do a 
record trip round the world, will soon turn 
his thoughts to those parts of the country to 
which railways have not yet penetrated, and 
where less conventional methods of progress 



are in vogue. It is here that you at last find 
the Japan of your imagination. The roar of 
New Japan is far — infinitely far away. Emerald 
hills and bubbling streams, distant outlines 
melting away imperceptibly in soft blue haze, 
sturdy peasant women knee-deep in mud and 
water, working desperately to get the rice-field 
planted in time to be coaxed to maturity by 
the burning summer sun, tiny temples and 
altars to nature's gods, — all are here just as 
they appear in the fascinating and sympathetic 
writings of Lafcadio Hearne. The sojourner 
in the East scents a familiar atmosphere and 
adapts himself instinctively to his environ- 
ments. He shakes ofi" the restraining thongs 
imposed by a conventional civilisation with 
something of relief, and travels once more 
after the manner of the immemorial East, 
with his stafi" in his hand and his loins 

Shod with the straw sandals of the country, 
purchased at the rate of two pairs a penny, I 
started one summer's morning on a trip into 
old Japan. We pegged along, I and my 
Japanese henchman, — a worthy of the old 

152 japan's place in the far east. 

school, with a name signifying in the English 
tongue Little Mountain," — and towards even- 
ing halted at a straggling village and put up, 
in accordance with custom, at the village inn. 
We had followed the course of a brawling 
river, whose banks were lined with precipitous 
mountains clad warmly with dense forest and 
piled in tangled masses in all directions. At 
intervals along the road stood the inevitable 
chaya or tea-house, perched on some over- 
hanging rock, seductively calling to the 
wayfarer to rest awhile in the shade of its 
hospitable roof. In common with the fre- 
quenters of the road, we accepted the welcome 
invitation, drank immoderately of the pale 
astringent tea of the country, — for the summer 
sun beat pitilessly down on the valley bottoms, 
— and then tramped on until another chaya 
hove into view to mark another stage in the 
day's journey. Thus for many days. 

The inn of Japan, unlike the serai of 
Western or Central Asia, supplies all the 
necessaries and, in a modified form, some of 
the luxuries of life. By far the most im- 
portant part of the building is the floor of 



yellow mats (jo), always of the uniform size 
of 6 feet by 3 feet ; wherefore the size of a 
room is described by the number of its mats, — 
a six-mat room or an eight-mat room. It is 
the most important portion of the building, 
because every operation, great or small, which 
calls for performance during the twenty -four 
hours, must inevitably be enacted upon it. If 
you desire to sleep you clap your hands for 
the inn maid, who proceeds to spread quilts 
for you — on the floor. If you desire refresh- 
ment, food — edible if unsatisfying — is served 
you in tiny bowls, with chopsticks supplied 
upon tiny lacquer stools — on the floor. You 
sleep on the floor, you eat on the floor, you 
sit on the floor, and at the end of twenty-four 
hours you have exhausted your ingenuity in 
contriving positions to ease your aching limbs, 
and are ready to welcome with open arms 
the rudest and most primitive article in the 
shape of a chair. Of course the floor is 
treated with due respect, and to enter a room 
with your feet shod is to commit a most 
unpardonable breach of etiquette. 

The scenery is varied but invariably de- 

154 japan's place in the far east. 

lightful. In the early summer whole hillsides 
are to be seen dotted with magnificent azaleas 
in full bloom, the flowers so massed upon the 
branches that nothing else is visible but one 
glorious blaze of colour — flaming crimson, 
scarlet, and mauve. " Little Mountain " ex- 
panded amid such congenial surroundings, and 
though he admitted that he had never walked 
so fast or so far in his life before, he invariably 
broke into song as he tramped along the 
mountain highways from Niigata in the prov- 
ince of Echigo, on the west coast of Hondo, to 
Nikko in the lovely province of Shimotsuke. 
His voice was not that of a trained singer 
and sometimes grated, so much so that I told 
him of a saying we had in England — 

" Swans sing before they die, 'tis said ; 
'Twere no bad thing 
Should some folk die before they sing." 

This gentle hint availed not at all, and " Little 
Mountain " chanted seraphically to the end 
of the journey. 

Along the valley of the Watarase Gawa, in 
the province of Kotsuke, masses of mulberry- 
trees testified to the importance and extent 



of the silk industry; while in the vicinity of 
lovely Ikou, and on the plateau of Karuizawa 
in Shinano, down upon which frowns the 
smoking cone of Asamayama, if the signs of 
wholesale destruction of timber told of the 
prodigal waste by the people of a valuable 
national asset, acres of new plantation also 
bore witness to the fact that the Government 
of to-day realise the necessity, in the interests 
of the national economy, of preserving and 
fostering the natural products of the soil.-^ 

^ The following table, given in Mr T. Masuda's ' Japan,' is 
suggestive of the immense potential value of the forests of 
Japan : — 

Oak and other Hard Woods. 


Total area. 

Forest area. 

Percentage of 
forest to total 






Great Britain 




France . 








Austria . 








Italy . . 




That the Government realise the importance of taking care 
of the country's forests is made clear by a note under the 
heading of forestry which appears in the ' Seventh Financial 
and Economic Annual of Japan,' published by the Department 

156 japan's place in the far east. 

Much, indeed, of the industrial life of the 
people may be gleaned by the traveller in 
the country districts. He will comment upon 
the fact that sheep are never met with in 
Japan, and he will be struck by the number 
of hand-looms in the cottages, on which fabrics 

of Finance: ''Although for some time after the Eestoration, 
forests in our country seemed to be doomed to destruction by- 
reckless felling of trees, they were subsequently brought under 
administrative control, and now forestry has begun to attract 
popular attention as an important industry. 

"The forest law at present in force was established in April 

"For the purpose of facilitating the development of for- 
estry, the aforesaid law was revised in April 1907, by which 
the regulations relating to the forest associations and the use 
and expropriation of land were newly established. 

" For the control of State forests and plains was established 
in 1899 the Law respecting State Forests and Plains, which 
makes it a fundamental principle to prohibit the sale, exchange, 
or transfer of a State forest or plain, except in public service 
or in furtherance of undertakings of public utility. It also 
contains provisions for charging cities, towns, villages, temples, 
or shrines with the control and protection of forests and 

It is worth noting that the export of railway sleepers has 
increased in value from £18,270 in 1898, the first year in which 
they are found among the articles of export, to £206,810 in 
1906 ; and that her exports of timber, boards, planks, &c., 
during 1907 showed an increase over that of the preceding 
five years of £1,058,600, or more than 300 per cent. 


of silk and cotton are woven by the peasant 
folk. It was pointed out to me by Prince Ito, 
when I commented upon it in conversation at a 
later date, that it was due to this fact, that so 
much of the industry of Japan was carried on 
by hand, that she could not in many cases 
produce at cheaper rates than European 
countries, in spite of her geographical position 
and her cheap labour. 

But it was more with a view to giving 
the reader a glimpse of old Japan, than with 
a view to drawing a picture of her industrial 
and economic life, that I embarked upon this 

There are at least two imperishable monu- 
ments to the charm of old Japan. From the 
maritime province of Suruga, Fuji San, the 
peerless mountain, depicted alike in story 
and in every form of indigenous art, rears 
its majestic cone heavenwards to a height 
of 12,365 feet. In the adjoining province of 
Sagami, the far-famed Buddha of Kamakura 
excites the admiration of travellers from all 

In August, when the cap of snow has 

158 japan's place in the far east. 

almost disappeared from the crest of the 
sacred mountain, scores of pilgrims travel to 
Gotemba, whence the ascent to the shrine 
which stands upon the lip of the crater is 
made. The number of persons who drag 
their protesting limbs up the steep ascent 
is said to range from 12,000 to 18,000 a 

I left Gotemba at 2.30 one August morning, 
and reached the summit at 2.5 on the same 
afternoon, passing many struggling pilgrims 
— men and women — by the way. Faithful 
''Little Mountain" was with me, but being 
seized by a severe attack of mountain sick- 
ness, from which he did not recover until 
he reached lower levels once more on the 
following day, dinner and breakfast did not 
attain to epicurean standards. A floor that 
might have passed muster in the palaeolithic 
age, doubtfully clean quilts, and none too 
many even of these, a frigid atmosphere, 
choking smoke, and herds of enthusiastic and 
ecstatic pilgrims, are the dominant impressions 
left upon my mind by my night spent on the 
summit of the peerless mountain. The view 


which I had hoped to enjoy was blotted out 
by a sea of clouds, out of which rose the 
summit of the cone upon which I stood, 
while immediately overhead hung the clear 
star-spangled dome of heaven. 

Having made a small contribution towards 
the restoration and upkeep of the shrine on 
the summit, dedicated to the goddess Kono- 
hana-sakuyahime-no-mikoto, I was somewhat 
abashed to find that I had become, ipso facto, 
a member of the Fujisan Chojo Okumiya 
Kaichiku Kyosankai, or Association Organised 
for the Eepair of the Shrine, and that as 
such I was entitled to claim the following 
advantages : — 

1. A medal and letter of thanks from 

the Asama shrine. 

2. Special treatment (unspecified) when- 

ever making the pilgrimage to Mount 

3. Entertainment with sacred sake on the 

occasion of the celebration of the com- 
pletion of the repairs. 

4. The preservation of my name for ever 

in the shrine itself. 

160 japan's place in the far east. 

With far less expenditure of tissue one 
may visit the great Buddha of Kamakura, 
standing in the open in temple grounds, 
themselves situated in the midst of idyllic 
surroundings. Here, indeed, is a glimpse of 
the East that is dreamed about. All thoughts 
of factories, mills, and workshops, the toys 
and vanities of men, vanish like chaff before 
the wind, and some things in the complex 
character of a people which before appeared 
inexplicable become, to some extent at any 
rate, intelligible. 

" And whoso will from pride released, 
Contemning neither creed nor priest, 
May feel the soul of all the East 
About him at Kamakura." ^ 

You pass through an ornamental gateway 
and on along an avenue of stately trees, and 
then suddenly you halt involuntarily as the 
first view of the great image bursts upon 
your gaze, and you realise instinctively that 
there stands before you, in all its beauty of 
outline and symmetry of form, the very 
apotheosis of the artistic genius of Japan. 

1 Eudyard Kipling. 


The great image stands in the open, in grounds 
of exquisite charm, a charm which it is im- 
possible to ignore. Twice I came when the 
blossom was on the cherry-tree and the 
camellia was in flower, when the fresh green 
feathery leaf of the maple showed bright 
against the sombre-hued background of cypress 
and fir. Men and women in bright kimonos 
passed up the steps, halting at the top to 
bow and breathe a hurried prayer, and all 
round elf-like children made quaint and in- 
comprehensible progression upon high and 
hopelessly inconvenient-looking clogs of wood. 
And because of the beauty of the scene, or 
for some other reason, perhaps, which did not 
admit of analysis, I came again, not once nor 
twice but many times, when clouds scudded 
angrily across a lowering sky, and again when 
the heat of a summer midday filled the 
wooded glens and hollows with billows of 
soft blue haze, and each time the beauty 
of the scene appeared to me to grow. Yet 
amid all the charm of changing scene the 
idea that rushes irresistibly uppermost in the 
mind is that of absolute immutability. In the 


162 japan's place in the far east. 

infinite peace which seems to find materialis- 
ation in the expression of divine calm on 
the face of the Buddha, is a mute and in- 
exorable challenge to change and time. The 
setting varies with the season, but the great 
image remains the same, untouched by the 
passing of time, heedless of summer and 
winter, spring-time and autumn, unconscious 
of the men that come and the generations 
that have gone, wholly absorbed in sublime 
meditation and that perfect peace which only 
dawns with the final annihilation of passion 
and desire. All else falls into insignificance 
before that expression of unearthly calm — of 
complete and immense repose. 

Perhaps nothing bears stronger testimony to 
the prosaic, phlegmatic character of the sturdy 
adventurers of the seventeenth century than 
their callous indifi'erence to what they regarded 
doubtless merely as a heathenish idol. 

"This image," wrote Captain John Saris 
in his diary of September 12th, 1613, "is 
much reverenced by travellers as they passe 
there," — a form of weakness, however, which 

The Great Buddha of Kamaknra. 



he was careful to show was little affected 
either by himself or his followers, for he 
adds, " Some of our people went into the 
body of it, and hooped and hollowed, which 
made an exceeding great noyse. We found 
many Characters and Marks made upon it 
by Passengers, whom some of my followers 
imitated and made theirs in like manner." 
The ravages perpetrated by the travelling 
vandals of the present day have indeed called 
forth a pathetic appeal from the Prior of 
the Order charged with the custody of the 
image, which greets one at the entrance to 
the grounds : Stranger, whosoever thou art, 
and whatsoever be thy creed, when thou 
enterest this sanctuary remember thou tread- 
est upon ground hallowed by the worship of 
ages. This is the temple of Buddha and the 
gate of the eternal, and should therefore be 
entered with reverence." 

One would fain linger in such a spot, the 
home of eternal peace ; but almost within a 
stone's -throw of Kamakura the hum of the 
busy naval yards at Yokosuka rises upon 

164 japan's place in the far east. 

the air, telling and re -telling the story of 
fifty years, that Japan has renounced her 
seclusion from the world and has been swept 
into the vortex of international rivalry and 




Few will be found to deny tliat the Japanese 
are a fighting people. Nevertheless, it would 
be a grave mistake to suppose that Japanese 
ambition has seen its consummation in the 
capture of Port Arthur or on the blood-stained 
battlefields of Mukden or Liao Yang. Japan 
is advancing with a fixed determination to- 
wards the goal which still stands far off on 
the horizon of the future. Military ascendancy 
may pave the way ; but military ascendancy 
is by no means the only end in view. Political 
power supported by military prestige, com- 
mercial and industrial supremacy in East Asia, 
a dominant voice in the destinies of the 
Eastern world, — such are the objects towards 

166 japan's place in the far east. 

the attainment of which the national energy 
is being turned. It is in the factory and the 
workshop as much as in the arsenal and the 
dockyard that the key to the future will be 
found, — amid the roar of machinery and the 
hiss of steam, and the unceasing whirr and 
crash of the spindle and the loom. 

For the successful achievement of her ap- 
pointed programme peace is an essential con- 
dition. Better than most men the courageous 
statesmen who were responsible for the signing 
of the Treaty of Portsmouth knew this to be 
so, and, with their gaze fixed steadily into 
the future, they did not hesitate to face the 
storm of public indignation which they knew 
their action must provoke. The world ap- 
plauded and the people stormed. A military 
escort, — no mere guard of honour, — the groans 
and hisses of the populace, and rows of white 
flags in place of bunting along his route, 
constituted the home-coming of the envoy of 
Japan, while the fury of the misguided mob 
found uncouth expression in parading before 
the popular gaze gory representations of the 
detruncated head of the President of the 


United States, as the promoter of the con- 
ference which had been the means of dis- 
appointing them of their hopes. Misled by 
the tone of the native Press, which had 
foreshadowed a large indemnity, public feel- 
ing for a time ran high, until, with the 
publication of the terms of the newly con- 
tracted alliance with Great Britain, soberer 
counsels prevailed, and the nation resumed 
once more its appointed path of progress. 

It need hardly be pointed out that there 
is much that is of supreme interest and 
importance to Englishmen to be found in the 
industrial and commercial Japan of to-day. 
Not the Japan of fancy, depicted in a 
voluminous literature as a land of temples 
and tea - houses, a sort of quaint earthly 
paradise existing solely for the benefit of the 
flotsam and jetsam of the restless West, where 
the twang of the samisen fills the air and 
the alluring charms of the laughter -loving, 
almond-eyed geisha reign supreme, and where 
the cares and responsibilities and conventions 
of the prosy West may for a space be con- 
veniently laid aside; but the Japan which has 

168 japan's place in the far east. 

of recent years excited the attention of more 
sober pens, the Japan whose pulse beats 
quickest in the busy thoroughfares of industrial 
centres and amid the bustling activity of great 
commercial ports. The temples of Nikko and 
the tea-houses of Kyoto, the lovely scenery 
of Chuzenji or Miyajina, still draw and fascin- 
ate a vast annual concourse of the pleasure- 
seekers of Europe and America ; but in the 
factories of Tokyo and Osaka, in the dock- 
yards of Nagasaki, Kure, and Yokosuka, amid 
the furnaces and steel works of Wakamatsu, 
and the coal - pits of Kyushu may best be 
seen and appreciated the real spirit of modern 
Japan. These things find no place in the 
recognised programme of tourist travels, which 
accounts for the existence of an unfortunate 
scepticism as to the industrial and commercial 
ambitions of Japan. 

Yet history can show no parallel to the 
achievements of her people in this direction 
in recent years. It is no small thing that in 
the course of two decades she should have 
built up a foreign trade from a modest total 
of less than £10,000,000 in 1887 to a sum 

japan's achievements. 


little short of £95,000,000 in 1907,'— a total, 
that is to say, for her population of 48,000,000, 
which falls short of the total foreign trade of 
China, with a population more than eight times 
as great, by only £18,000,000. In a space of 
thirty -five years she has constructed 5000 
miles of railway, exclusive of her undertakings 
in this direction in Manchuria and Korea ; and 
in face of the opposition of a vast existing 
competition she has created a mercantile 
marine of upwards of 6500 steam- and sailing- 
vessels, with a displacement little short of 
1,400,000 tons. Not only has she succeeded 
in many lines in supplanting in her own 
dominions the products of Western factories 
with the products of her own, — a development 
about to be further facilitated by a recent 
revision of her tariff law, — but her manufac- 
turers are daring to compete — and compete 
successfully — with the manufacturers of Europe 
in the adjacent markets of China and Korea. 
In her naval yards monster battleships of the 
latest type are being built, while her private 
dockyards are finding a new source of profit 

1 £9,872,676 in 1887 and £94,619,022 in 1907. 

170 japan's place in the far east. 

in the supply of torpedo - boats and other 
craft for an embryo navy for Peking. 

An atmosphere of feverish activity pervades 
the mills of Tokyo and Nagoya, Hiogo, Yok- 
kaichi, and Osaka, where day and night alike 
may be heard the ceaseless roar and hum of 
wheels gyrating noisily in violent and per- 
petual motion. The half million spindles 
which ten years ago were described as 
"challenging the command of the Far Eastern 
market " are represented to - day by treble 
that number, with a capital of close upon 
£4,000,000 and a half-yearly output of 184J 
million pounds of yarn. I found in Osaka 
a cotton-spinning company paying a dividend 
of 40 per cent, and upon referring to statistics 
I learned that in 1905 the port of Kobe alone 
showed an increase in the value of her imports 
over 1904 amounting to £5,375,000, of which 
amount £3,419,000 stood for an increased 
importation of raw cotton and machinery. 
In a single shed at one of the mills of the 
Miye Co. at Yokkaichi I saw 1000 steam- 
looms turning out a ceaseless stream of 
sheeting for the markets of Manchuria and 


Korea. The large profits, indeed, made by 
the cotton-spinning companies in 1905, owing 
to the low price of Indian and American cotton 
at the beginning of the year, and to the 
further fact that they had previously sold 
their production as far ahead as May and 
June, had placed them on a firm footing, 
and was inducing such directors as were able 
to resist the grasping demands of avaricious 
shareholders for colossal dividends, to still 
further increase their plant. In many of the 
large spinning-mills English machinery, bearing 
dates as recent as the last three or four years, 
was to be seen, and inquiries at various mills 
elicited the information that the spindles of 
the country were being increased by many 
thousands at the time. 

With cheap labour, cheap coal, an unrivalled 
geographical position, and an abundant water- 
power, the value of which is being rapidly 
recognised, as is proved by the vast schemes 
for making use of it which are under consider- 
ation at the present time, the manufacturers 
of Japan would appear to have solid advan- 
tages on their side in the fierce struggle for 

172 japan's place in the far east. 

supremacy in Far Eastern markets ; and the 
increased value of the export of the chief 
cotton manufactures^ from £2,598,145 in 
1902 to £4,868,767 in 1906, in spite of the 
drain upon the resources of the country owing 
to an exhausting war, points to the conclusion 
that such advantages are not being wasted. 
Upon the actual value of these advantages 
I shall have something further to say : for 
the moment I desire merely to emphasise the 
tendency of Japanese trade, and the deter- 
mination of those engaged in it to encourage 
the importation of raw^ material and productive 
machinery, and the export of manufactured 
goods. That this process, which I observed 
in the course of my inspection of many 
factories and her chief commercial ports, is 
still in progress, is shown by the following 
observation in Mr Consul Bonar's report on 
the trade of Kobe for 1907: ''There can be 
no question as to the tendency of Japan to 
take less and less of wholly manufactured 

^ These articles are : cotton yarn, cotton blankets, cotton 
flannel, cotton crape, nankeens (imitation), shirtings, T-cloths, 
and towels. 


goods, and the striking increase in machinery, 
— the only manufactured goods whose import 
shows any notable increase, — which prevents 
this section from showing a decrease, is an 
example of the determination of this country 
to manufacture for itself." Her trade for the 
first half of 1908 continues the story, the 
principal increases in her imports during that 
period being in machinery and articles for 
manufacturing purposes ; and it is interesting 
to note that the anxiety displayed by some 
at the excess of imports over exports during 
the six months is ridiculed by Mr Ichinoi, 
President of the Tokyo Trading Company, 
who points out that the excess of imports is 
due mainly to Japan's purchases of machinery 
for productive purposes, and that such imports 
are a subject of congratulation rather than of 
anxiety, since they add to the country's pro- 
ducing power, and consequently to the future 
growth of her export trade. 

In the city of Osaka may be seen a micro- 
cosm of Japanese modern industrial life. Ever 
the pioneer in industrial enterprise, the city 
has flourished amazingly during recent years, 

174 japan's place in the far east. 

and boasts of a population which, already 
aggregating upwards of a million souls, is 
increasing at the rate of from seventy to eighty 
thousand a-year. No longer content to rely 
upon the adjacent city of Kobe for a port, her 
people have already expended £2,250,000 upon 
the construction of a harbour, and are prepared 
to spend a similar sum in providing themselves 
with a thorough system of electric trams. Ere 
long they anticipate sharing in a colossal 
scheme for generating a force of 45,000 horse- 
power through the agency of the waters of an 
upland lake. The city is credited with over 
5000 factories and workshops, responsible for 
a production exceeding in value £10,000,000 
a-year, and spinning-mills, weaving-establish- 
ments, dockyards, iron-works, sugar-refineries, 
cement-works, chemical-works, brush-factories, 
and match - factories conspire to array her 
in the smoke -begrimed garb of the manufac- 
turing centres of the West, and to impart to 
her thoroughfares an appearance of immense 

What Osaka does to-day a whole posse of 



admiring and aspiring followers may be counted 
upon to do to-morrow, — and surprising results 
have accrued. Bristles are imported from 
China and Europe, bone from England and 
Chicago, teak and ebony from the Dutch East 
Indies, freight and import duties are paid, the 
raw materials made up into tooth-brushes, nail- 
brushes, and hair-brushes at the rate of many 
thousands a-day, freight on the finished article 
paid back to Europe, and Messrs Kent under- 
sold in the London market ! Two or three 
years ago Japan was a large importer of refined 
sugar ; to-day she is exporting the commodity 
to China, Korea, and Hong Kong. The little 
town of Moji, itself only fifteen years old, I 
found exporting 20,000 casks of cement to 
San Francisco, — a single example of many of 
Japanese good arising out of American disaster. 
It having been observed that the importation 
of printed calicoes had reached in value a sum 
of £2,000,000 a-year, £100,000 was subscribed 
with a view to establishing the industry in 
Japan. The manufacture of glass, already 
exported in small quantities, I found about to 

176 japan's place in the far east. 

be stimulated by the formation of a foreign and 
Japanese company with a capital of £150,000. 
In the camphor of Formosa is to be found 
a valuable adjunct in the prospective manu- 
facture of celluloid ; and no little interest was 
being evoked by the erection of an Armstrong 
explosives factory in Japan. Within a stone's- 
throw of the gorgeous temples at Nikko, the 
prosaic sheds and chimneys of a flax-spinning 
mill stand boldly for New Japan, and when 
you enter a protest at this crude invasion of 
sacred ground, you are met with a shrug of 
the shoulders and the incontrovertible reply 
that the fall of water supplies a force of many 
hundreds of horse-power, and that whereas 
linen was formerly purchased exclusively from 
abroad, its manufacture now gives occupation 
to many hundreds of people at home. 

Perhaps enough has been said to show the 
strength of purpose and intention which in- 
spires the manufacturing classes in Japan. 
But just as in military matters Japan as a 
whole may be likened to one great machine, 
controlled and directed by the master-mind 
of the Government, so may Japan as a com- 



mercial and industrial force be said to be dom- 
inated and guided by the far-seeing wisdom 
of the powers that be. It is of supreme 
importance, for the attainment of the ultimate 
goal to be reached, that Japan should become 
a commercial and industrial nation, and the 
merchants and manufacturers of the country 
constitute, therefore, an important portion of 
the whole machine, demanding careful and 
expert handling by the controlling mind. 
Hence an attitude of paternal interest and 
solicitude towards commercial and industrial 
development is to be observed on the part of 
the Imperial Government. Bounties and sub- 
sidies are the order of the day. State funds 
are allocated for the experimental production 
of cotton in Korea. " If Korea can ultimately 
supply this cotton," declared the Minister of 
Finance, "a very radical change will be effected 
in the cotton industry of Japan." Bounties 
are granted to shipbuilders and subsidies to 
shipping companies, and the nation's shipping 
grows apace. Freights on the railways prove 
unsatisfactory and lack uniformity, and, rightly 
or wrongly, the Government steps in and 


178 japan's place in the far east. 

acquires the country's communications for itself. 
The holders of railway stock may raise objec- 
tions and Ministers may resign, but the will 
of the Government prevails. Where private 
enterprise fails, the Government itself steps 
in. I found that two and a quarter million 
sterling had already been swallowed up in a 
heroic endeavour to plant an exotic industry 
upon an uncongenial soil, in pursuance of 
which an array of coke ovens, blast furnaces, 
and steel plant had been erected at the national 
steel works of Edamitsu, and coal and iron 
mines had been acquired. Caustic criticism 
as to expenditure leaves the will of the ruling 
powers unscathed, and further increases are 
made. The word went forth that the capacity 
of the coke ovens should be increased, and 
I learned that, in conjunction with the Ad- 
miralty, their capacity was to be raised from 
500 to 1000 tons a-day, and additional blast 
furnaces and Bessemer furnaces were to be 
set up. Steel rails, steel plates, steel girders, 
steel tyres and shells, were being turned out 
at the time of my visit, and 180,000 tons of 


steel was the estimated output in another two 
years' time.^ 

While labour laws are conspicuous by their 
absence, legislation is undertaken in the in- 
terests of the business classes. In 1900 a law 
was passed for facilitating the formation of 
business guilds and incidentally freeing such 
guilds from income and business taxes. For 
the purpose of the act such guilds are defined 
as ^^corporations having the status of juristic 
persons, which are formed for the purpose of 
developing the business or the finances of the 
members, and with the following objects : — 
1. To lend the capital required by members. 

II. To sell articles produced by members, 
with or without the addition to such 
articles of skilled work. 

III. To buy, and sell to members, articles 

necessary for their business. 

IV. To apply skilled work to articles pro- 

duced by members." 

1 It is said that up to the present time (1908) the foundry 
has cost the nation £6,000,000. (Diplomatic and Consular 
Eeports : Trade of Japan for the year 1907.) 

180 japan's place in the far east. 

In the same year a law to facilitate the forma- 
tion of Staple Commodities Identical Business 
Guilds" was passed, the object of Identical 
Business Guilds " being laid down to be " by- 
combination and agreement amongst its mem- 
bers to correct defects in a business and to 
promote its interests." 

It may be observed that in both these enact- 
ments are included provisions calculated to 
effectively place the control of such guilds in 
the hands of the State. 

Difficulty in securing foreign capital was 
found owing to a lack of suitable security for 
foreign loans, and the mortgage law of 1905 
was passed, enabling Japanese companies en- 
gaged in mining, railways, and manufacturing 
to pledge their property as security, thus 
facilitating the acquirement of foreign capital 
at lower rates of interest. "Prior to the 
passage of these laws," wrote Mr Hunter Sharp, 
American Consul at Kobe, on June 30th, 1906, 
"the rate of interest on foreign loans varied 
from 7J per cent to 9 per cent, while shortly 
after they became effective some loans were 
made as low as 5 per cent." 


Coming events cast their shadows before, and 
in the new tariff law of March 1906 may be 
found an indication of the probable fiscal 
policy of the country at the expiration of the 
existing conventional tariffs, which tie her 
hands till 1911. On June 16th of the present 
year (1908), Count Okuma addressed a meeting 
of the United Chambers of Commerce in Tokyo. 
He pointed out that it was essential for Japan 
to bring about an alteration in her continuous 
adverse balance of trade. He then went on 
to say that the time was rapidly approaching 
when Japan would have an opportunity of 
radically revising her Customs tariff, and it 
would then be for her to decide hy the light 
of the above considerations whether she would 
adopt a policy of protection or make the collec- 
tion of revenue her principal object. Coming 
from a free trader ^ such a speech is significant, 

^ Though Count Okuma does not actually declare himself in 
favour of a protective tariff in the above speech, he certainly 
appears to point to its advisability. If this be so, he must have 
modified his views during the past two years. When I had 
the advantage of discussing the matter with him in 1906, he 
spoke with disapproval of the tariff law of the spring of that 
year, as being opposed to a policy of Free Trade. While ad- 
mitting that it was so, he expressed regret at the undoubted 

182 japan's place in the far east. 

and it is hardly too much to say that reserva- 
tion of the home market and protection and 
encouragement of home industries are clearly 
foreshadowed, — such protection as will enable 
Japan to stand independent of the West, and 
to possess a commanding voice in the moulding 
of the commercial destinies of Asia. 

In the foregoing pages some idea has been 
given of the present industrial and commercial 
activity of Japan, and of the avowed deter- 
mination of the Government to do everything 
in its power to foster and encourage the 

fact that the educated classes, inspired by a spirit of patriot- 
ism and by the example of America and Germany, were 
becoming imbued with a spirit favourable to a policy of 
protection. It may be of interest to add his observations upon 
a change in her fiscal policy by Great Britain, which I took 
down at the time : " I advocate the adoption of Mr Chamber- 
lain's policy by England, believing that it would result in an 
armageddon of tarifi" wars. J ust as you get calm after a great 
storm," he went on to say, "so would we enjoy a period of 
calm and peace after an all-round tariff war ! " 

It is worth noting that, in spite of the existence of conven- 
tional tariffs with most of the great Powers, Japan has 
succeeded in increasing her duties during the past three or 
four years, the average ad valorem rate of duty on dutiable 
goods having risen from rather under 10 per cent in 1904 to 
rather over 15 per cent in 1907. This is chiefly due to the 
tariff law of 1906 already referred to. 

WHAT ARE japan's PROSPECTS? 183 

industries of the country. The question which 
will naturally be asked is, What are her pros- 
pects of success in carrying out the ambitious 
programme which she has set herself? I 
shall endeavour to give an answer to this 
all-important question in the two following 




If the activity to be seen in the mills and 
factories of Japan suggests that the prospects 
for her commercial and industrial future are 
bright, it must also be observed that the diffi- 
culties which lie athwart her path are by no 
means insignificant. In the matter of natural 
resources she cannot compare with a country 
like our own, and coal, copper, — a valuable 
asset in view of the world-wide and increasing 
demand for electrical appliances, — cereals, tim- 
ber, marine products, silk, and tea may be said 
to comprise the most prominent items among 
her indigenous resources. Iron exists only 
in moderate quantities, and the export of tea 
must be described as a diminishing industry. 


Of all her exports, that of silk is by far the 
greatest, while that of cotton goods, as already 
indicated, is destined to increase. It is inter- 
esting to observe that of a total export trade 
of rather more than £32,000,000 in 1905, 
approximately £16,500,000 was represented 
by the various products of silk and cotton, 
while copper, coal, tea, matches, marine pro- 
ducts, porcelain, drugs and chemicals, mats 
and matting, straw -braid, tobacco, paper, and 
camphor come next in order of value. This 
proportion has been preserved with extraordin- 
ary faithfulness up to the present time, silk 
and cotton goods being responsible for a sum 
of £22,044,500 out of a total export trade 
valued at £43,258,312 in 1906, and for 
£22,216,600 out of £44,142,147 in 1907. 
When it is further pointed out that approxi- 
mately three-quarters of these sums (£16,124,600 
in 1906, and £16,378,700 in 1907) represent 
the value of raw silk and silk products, the 
paramount importance of the silk industry to 
Japan becomes apparent. 

Nor must it be forgotten, in considering 
the present and the immediate future, that the 

186 japan's place in the far east. 

price of victory has been by no means light, 
and that as the result of the war Japan is 
saddled with a considerable foreign debt. 
Japanese financiers, brought up in an atmo- 
sphere of desperate financial expedients, have 
secured consent to a heroic scheme of amortisa- 
tion, on account of which £11,000,000 is to be 
allocated annually for the next thirty years to 
the service of the debt — an amount equal to 
the sum-total of her revenue of a dozen years 
ago. With no indemnity to swell the contents 
of the national purse, as was the case after the 
Sino- Japan War, the anxiety of the Govern- 
ment to foster trade, and, above all, to build 
up and increase the exports of the country, is 
sufficiently intelligible, quite apart from avowed 
ambitions in the direction of national commer- 
cial aggrandisement, and in part explains the 
prodigious interference on their part in the 
interests of national industrial competition, as 
contrasted with a conspicuous absence of official 
interest in the regulation of the internal indus- 
trial economy of the country. 

The advantage of cheap labour to a manu- 
facturing community is obvious, and the mere 



repetition of the phrase " cheap labour " is 
usually considered to be a sufficient answer by 
those who see in Japan a great industrial peril, 
to those who are unreasonable enough to de- 
mand reasonable proof before accepting the 
crude assertions of the alarmists. Of course 
the manufacturers of Japan are ardent advo- 
cates of cheap labour. Low wages are essential 
to successful competition with foreign industry, 
they declare, and as far as factory legislation is 
concerned the manufacturers have their way. 
Despite the fact that with the increased cost of 
living in recent years wages have risen from 
50 to 100 per cent, fivepence or sixpence for a 
day of twelve hours may be said to be a fair 
wage for women in the spinning- mills, and 
tenpence to a shilling for men, while many may 
be seen working considerably longer for appre- 
ciably less.^ For the attitude of cold indiffer- 
ence, if not of open hostility, towards socialistic 

1 I have deduced these figures from my own inquiries in 
different mills. They are approximately the same as the offi- 
cial figures. The average daily wages of cotton operatives are 
given as follows in the 'Financial and Economic Annual of 
Japan' (1907)— male, 36 sen (9d.) ; female, 22 sen (5^d.) 

188 japan's place in the far east. 

agitation of recent years, for the promulgation 
of drastic police regulations for the preserva- 
tion of peace and order in 1900, for the forceful 
suppression by the authorities of certain social 
democratic associations, and for their refusal to 
accept an invitation to send delegates to the 
international conference at Berne, held with a 
view to prohibiting night work by women, the 
newly arisen aristocracy of wealth no doubt 
breathed a devout prayer of thanks. 

It is worth while, however, to inquire a little 
more closely into the matter of cheap labour. 
By the time one has visited a fair number of 
industrial concerns where labour of various 
sorts is employed, it is forced home upon one 
that merely cheap labour is not necessarily 
economic labour. The wages paid to individ- 
ual workmen in Japan are undoubtedly much 
lower than those paid in England, for instance. 
On the other hand, the work of the well-paid 
English workman is very much more valuable 
than the work of the ill-paid Japanese. For 
example, in the Kawasaki dockyard at Kobe 
7500 hands are employed, and I was informed 
by the manager that he estimated that the 


work done could be performed without diffi- 
culty by 4000 British workmen. This estimate 
was confirmed by the Japanese managers of 
other factories, and by the foreign manager of 
the Eoyal Brush Company at Osaka, who esti- 
mated that the work done by three Japanese 
workmen would be successfully carried out by 
two French workmen, and that done by seven 
Japanese women by five French women. It is 
fair to add, however, that he considered that 
in spite of this inferiority on the part of the 
Japanese workpeople his wages bill was less by 
half than it would be if European labour were 

Nor are there lacking signs that the action 
of the manufacturers in driving the human ma- 
chine at an excessive speed is likely to rebound 
upon their own heads. The highly coloured 
pictures of the delights of city life painted by 
the procurers of labour for the consumption of 
the country Hodge, fade sadly under the grim 
reality of extended hours and diminished pay, 
and are apt to excite doubts in the minds of 
the country folk as to the joys and advantages 
of factory life. Moreover, long hours are inim- 

190 japan's place in the far east. 

ical to real efficiency, and the general severity 
of existing conditions can hardly be conducive 
to the future welfare of the race. Not least 
among the cares of the employer, too, as a 
result of all lack of reasonable legislation, must 
be reckoned the hopeless levity with which the 
Japanese workman regards — or disregards — the 
obligations of contract, a state of things pro- 
ductive of an irritating uncertainty as to supply. 

If one hesitates to accept in its entirety the 
bitter assertion of an ardent lover of Old Japan, 
that there have been brought into existence 
— with no legislation to restrain inhumanity — 
all the horrors of factory life at its worst," one 
is at least forced to admit that, judged by 
European standards, there is much that may 
well call for redress. When one sees women un- 
dergoing the physical strain of a fourteen hours* 
day at the hand-loom at a fraction of a penny 
an hour, when one unexpectedly encounters 
coal-begrimed and scantily-clad female figures 
emerging from the coal-pit's mouth, and when 
one observes children of ten and twelve toiling 
through the long weary day in the factory for 
a pittance of twopence, one cannot but suppose 
that sooner or later the question of the rights 



and the position of labour will call for solution. 
According to the official returns for 1906, no 
less than 48,450 out of the 587,851 hands given 
as being employed in various factories were 
children (boys and girls) under the age of four- 
teen. In India, even under the existing law, 
which has recently been the subject of a report 
by a Committee appointed by the Government 
of India to inquire into the conditions of labour, 
children under the age of nine years may not 
be employed, and those under the age of four- 
teen years may not be employed for more than 
seven hours a-day. In Japan I could jfind no 
such regulations, and as I watched the tiny 
workers in the factories it was borne in upon 
me that some day the cry of the children will 
be raised : — 

" ' For oh/ say the children, ' we are weary, 
And we cannot run or leap — 
If we cared for any meadows, it were merely 
To drop down in them and sleep. 

For, all day, we drag our burden tiring, 

Through the coal-dark, underground — 

Or, all day, we drive the wheels of iron 

In the factories, round and round.' " ^ 

E. B. Browning. 

192 japan's place in the far east. 

For the present the industrial machine grinds 
relentlessly on in the fierce struggle for advan- 
tage in the commercial race, and the women and 
the children toil patiently by day and by night 
for the industrial and commercial advancement 
of Japan ; but there are not lacking signs of 
the growth of an inconvenient labour-emanci- 
pation propaganda, calculated to bring about 
the re-enactment upon the Japanese stage of 
the all too familiar scenes culled from the 
socialistic repertoire of the West. There have 
been isolated strikes from time to time during 
recent years, but for the first time in her in- 
dustrial history the year 1907 has seen a 
number of serious difi'erences between labour 
and capital. From such different classes as 
miners, dockyard hands, cotton operatives, 
sugar-refiners, and tailors have come demands 
for increases in pay; and disputes between 
the men and the employers at the Ashio 
and Besshi copper-mines resulted in serious 
trouble and the introduction of the mili- 
tary, the damage effected in the two mines 
amounting to nearly half a million sterling. 
The men employed in the Ashio mine, which 



I visited during my stay in the country, 
demanded an increase of 60 per cent in 
their wages ; but it appears that they did 
not even wait to learn the final decision of 
the managers upon what can only be re- 
garded as an exorbitant demand, but stormed 
and captured the works, seizing the stores, 
abstracting the provisions, and setting fire 
to the offices. The most significant feature 
of this outbreak is to be found in the fact 
that it has been attributed in large measure 
to the influence of certain socialist leaders, 
who had organised a shisei-kai (truth-party) 
among the miners, and habitually preached 
doctrines calculated to produce discontent. 

Many employers of labour with whom I 
discussed the labour question admitted that 
it was a problem which would have to be 
faced, but the general opinion seemed to be 
that there was no prospect of serious diffi- 
culties arising between capital and labour for 
some time to come. In light of the events 
of 1907, it seems possible that the wish was, 
to some extent, father to the thought. I 
must admit, however, that in some of the 


194 japan's place in the far east. 

factories, at least, which I visited, I found 
excellent relations obtaining between em- 
ployer and employed. In the case of one 
employer, engaged in the production of raw 
silk, silk fabrics, tea, and sake, I found a 
system of a patriarchal character in vogue — 
board, lodging, and medical attendance being 
provided free, in addition to small money 
wages. In most cases I found manufacturers 
complaining of the difficulty of procuring 
labour : here, on the contrary, I learned 
that in spite of what appeared to me to 
be severe work — women being employed at 
the hand-looms during ten and a half hours 
out of a twelve hours' day for a wage of 
4Jd. — no difficulty was experienced in obtain- 
ing all the labour required. 

Before leaving the question of labour, it is 
worth pointing out that even under present 
conditions the price of labour has consider- 
ably advanced. The daily wages of a car- 
penter, which averaged 7id. in 1894, stood 
at Is. 3d. in 1905 ; those of a blacksmith, 
which averaged 7d. in 1894, at Is. 2d. in 
1905 ; those of a shipwright, which averaged 



7id. in 1894, at Is. 4d. in 1905; a farm- 
labourer who contracted for £1, 18s. for a 
year's work in 1894, contracts for £3, 17s. 
to-day ; and so on throughout the whole 
scale of employment. What this means upon 
cost of production is sufficiently obvious, and 
may be illustrated by a single example — that 
of the cotton industry, where we find that the 
price of a bale of cotton yarn has risen from 
£8, 17s. 6d. in 1895 to £12, 13s. in 1905. 

Cheap and abundant coal has been men- 
tioned as another economic asset in favour 
of Japan. This has undoubtedly been the 
case in the past ; but with the general rise 
in the price of labour, the price of coal has 
inevitably risen too. The Chickuzen valley 
in Kyushu is the greatest coal - producing 
district in Japan, having an output of 
6,000,000 tons a-year, out of a total output 
for the whole country of about 11,500,000 
tons. The manager of some of the chief 
mines in this district informed me that 
wages had risen from 50 sen per man 
before the Kusso- Japanese War to 70 sen^ 
and early in the summer of the present 

196 japan's place in the far east. 

year a strike on the part of the coaling 
coolies at Moji resulted in a further 10 
per cent increase in their wages. 

The manager of a large cotton mill at 
Nagoya told me that coal which had cost 
him 15s. a ton at his factory door before 
the war, cost him from 25s. to 27s. now;^ 
and according to the British Commercial 
Attache at Tokyo, the price of coal " has 
risen so much of late years that the costs 
of production for those mills which require 
to use a great deal of it have grown to 
an unthought-of extent. . . . Coal which in 
1903 cost about lis. 5d. a ton, had increased 
to between 13s. and 14s. in 1906 and 1907." ^ 
According to official returns, a total output 
of 5,000,000 tons of coal in 1896 was valued 
at approximately 12,750,000 yen, whereas a 
total output of rather more than 11,500,000 
tons in 1905 was valued at 40,250,000 yen 
— a remarkable increase. 

^ This certainly sounds like an over-statement ; but I 
took the figures down at the time. 

2 Diplomatic and Consular Eeports : Trade of Japan for 
1907. It is not stated whether this is the price of coal at 
the pit's mouth. 


There is little doubt, however, that the 
output of coal in Japan can be greatly 
increased, — according to Mr Takashi Masuda, 
managing director of the firm of Mitsui & Co. , 
the present output could be doubled without 
much difiiculty, — and the nation has acquired 
a valuable asset in this respect in the coal- 
mines of Fushun, in Manchuria. Moreover, 
the physical configuration of the country 
lends itself to the generation of water- 
power to a remarkable degree, and the 
formation of an Anglo -Japanese combination 
for generating electricity by water-power is 
at the present moment in an advanced state. 
The capital to be raised in London is already 
under - written, and many of the foremost 
business men in Japan have taken large 
numbers of shares. A contract has been 
secured for supplying electric power to the 
Tokyo railway to the extent of 20,000 horse- 
power, and further applications from manu- 
facturers are anticipated at an early date. 
It is estimated that when the whole scheme 
sees completion the power obtained will 
amount to 130,000 or 140,000 horse-power. 

198 japan's place in the far east. 

On the whole, therefore, Japan may be said 
to be in a favourable condition as far as 
motive-power is concerned. 

As regards geographical position little need 
be said, since her advantageous situation with 
regard to Far Eastern markets is plainly 
apparent. It is not disputed, moreover, that 
the advantage of this proximity to the con- 
sumer is accentuated by State-aided transport. 
I myself came across instances of goods being 
shipped from Niuchwang to Japan in Japanese 
bottoms as little more than ballast. Twenty 
sen a picul is about the lowest-paying freight 
between the two places, and in one case I 
found goods shipped at four sen a picul, and 
in another at eight sen. 

There is some truth, then, in the asser- 
tion that Japan possesses certain substantial 
advantages as a competitor in Far Eastern 
markets, though they are advantages the 
value of which may be easily over-estimated, 
as has already been shown. She has cheap 
labour, which is not so cheap as is some- 
times supposed, and which shows a decided 
tendency to become less cheap as time goes 


on ; she has the elements of cheap and 
abundant motive - power ; and she has an 
immensely favourable geographical position. 
She suffers, however, from certain racial 
characteristics which at present militate 
against her success as a commercial nation, 
and these are matters of such extreme im- 
portance that I propose to devote some 
little space to a discussion of them. 




I HAVE often heard it said by those who 
have watched the progress of Japan during 
recent years, that the impulsiveness peculiar 
to the character of her people is liable, as 
a result of national elation at success, to 
launch them upon undertakings out of all 
proportion to their means. That this con- 
clusion is based upon only too solid a 
foundation is, I think, a matter beyond 
dispute. It is equally true that they are 
subject to severe despondency when the 
inevitable reaction sets in. That immense 
profits are to be made by a shrewd in- 
vestor in Japanese concerns is not for a 
moment to be doubted. When a son of 



the land of Sinim casts his bread upon 
the waters, he does so with the confident 
expectation of finding it before many days, 
and it was a Chinese of inscrutable counten- 
ance who bought 25,000 Kanegafuchi cotton 
shares at 35 at the opening of Kusso-Japanese 
hostilities, and who smiled with complacent 
satisfaction later on as they mounted steadily 
to 139 ! A charming villa on the shores of 
the Inland Sea ofi'ers tangible testimony to 
the perspicacity of Chinese commercial instinct. 
But if Japanese shares are capable of rapid 
inflation, they are also peculiarly susceptible 
to financial depression. With the sudden 
influx of capital at the conclusion of the 
Sino-Japanese War, companies sprang up like 
mushrooms in the night, paid vast dividends 
for a brief space, and then collapsed, when 
in due course it was found that the capital 
had disappeared ! Demoralisation and loss of 
confidence, followed by a period of depression, 
inevitably ensued. 

A somewhat similar tale is told by the 
history of the period which has elapsed since 
the Eusso- Japanese War. A boom in industry 


set in soon after the declaration of peace, to 
be followed once more by a period of extreme 
depression, from which the country is suffering 
at the present time. There are not wanting 
symptoms, however, that the lessons of the 
boom and depression which followed the Sino- 
Japanese War have not been altogether lost 
upon the Japanese. The present depression 
is due, in part at any rate, to extraneous 
factors for which Japan is in no way respon- 
sible — namely, the debdcle in the copper market, 
the severe depreciation of silver, and the panic 
in the United States, all of which seriously 
affected her trade. The Japanese characteristic 
already referred to has undoubtedly aggravated 
the evil, as may be seen from the series of 
disasters which have occurred in the banking 
world, no less than twenty- five banks — the 
majority small village banks which had no 
right to existence, it is true — having closed 
their doors between the beginning of the period 
of depression and June of the present year. 
It is not to be wondered at that the confidence 
of the small investor is rudely shaken. But 


apart from unstable and mushroom institutions 
of this kind, it must be admitted that, at the 
conclusion of the late war, no little care was 
taken to prevent any recrudescence of the 
bubble enterprises of ten or twelve years ago. 
The very fact that no indemnity was paid 
had likewise a salutary effect in checking any 
tendency towards undue expansion, while the 
moral effect of victory undoubtedly gave the 
people a confidence in themselves which they 
had not before enjoyed. The greater sobriety 
with which industrial and financial problems 
were approached is clearly demonstrated by 
a comparison of the figures relating to new 
industrial enterprises during the two boom 
periods, which shows that whereas no less 
than 2449 new companies with a paid-up 
capital of 224 million yen sprang up during 
the former boon, the number of new companies 
added to the country's total by the boom of 
1905-1907 only amounted to 400, with a paid- 
up capital of 140 million yen. 

With a period of universal depression in 
trade setting in, and with considerable out- 

204 japan's place in the far east. 

standing obligations to meet as a result of 
liabilities incurred on account of the war,^ a 
period of difficulty lies in the path of the 
commercial and industrial progress of the 
country. Conditions which are temporary, 
however, must not be regarded as permanent ; 
and it is by no means improbable that when 
the period of depression has passed, as sooner 
or later it undoubtedly will pass, it will be 
found that the advantages reaped by the nation 
at large from the object-lesson of the depression 
of 1901 and 1902 will have been confirmed 
and increased by that of 1907 and 1908. 

There remains a serious impediment in the 
way of solid success in the world of commerce 
— namely, the bad name which Japan has 
acquired for two reasons : firstly, because of 
the frequency with which her manufacturers 
fail to turn out goods ordered up to sample ; 
and, secondly, because of an undoubtedly low 
standard of commercial morality. 

^ The indebtedness of J apan has increased from £60,000,000, 
at which figure her liabilities stood prior to the war, to 
approximately £220,000,000. 

A JAPANESE minister's WARNING. 205 

From both Chinese and European merchants 
in the Far East I heard complaints as to the 
inferiority of the goods supplied by Japanese 
manufacturers in carrying out their contracts. 
In their desire to rapidly enlarge their produc- 
tion and their profits, manufacturers accept 
contracts which they can only carry out by 
sacrificing quality. This is a serious mistake, 
especially where the purchaser happens to be 
a Chinese, for there is no man living who 
detects with greater certainty, or forgets with 
greater difficulty, inferiority of quality in the 
goods which he buys. It is a mistake which 
is recognised by the Government. In a speech 
at the opening of a conference of business 
men at Osaka on May 21st of the present 
year (1908), Mr Matsuoka, Minister of Agri- 
culture and Commerce, declared that he had 
reports from officials despatched by him to 
America to the effect that Japanese household 
furniture exported to that country compared 
most unfavourably both in quality and design 
with that obtained from Europe, and the 
point which, he said, he desired to enforce 

206 japan's place in the far east. 

was this, that they must make up their minds 
to compete with Europeans in the production 
of strong and well-designed articles, abandon- 
ing their old habit of turning out cheap but 
imperfect goods. Referring to Japan's exports 
to other Far Eastern markets, he declared that 
the trade was not making satisfactory progress, 
and that in his opinion this was due to two 
principal causes — firstly, the imperfect nature 
of the manufactured article ; and, secondly, 
the failure to introduce new and improved 

Such methods cannot pay in the long-run, 
though it is quite conceivable — and indeed 
highly probable — that they may prove profit- 
able enough for a time. Indeed, I found 
German merchants in China highly indignant 
at the arrival of a new and successful com- 
petitor at their own particular game — the 
production of that heterogeneous collection 
of goods known euphemistically as "fancy 
articles," cheap and nasty, and usually inferior 
copies of superior goods : clocks, lamps, 
ornaments, glassware, crockery, enamel, toilet 
accessories, and a hundred more. In this 


particular branch of industry the trader of 
Japan excels. As the rhymer has it — 

" If ' imitation's flattery ' 

(We learn it at our mother's lap), 
A flatterer by birth must be 
Our clever little friend the Jap."^ 

Still, there is nothing unfair in imitation 
pure and simple, and the Japanese is entitled 
to sell as many of his goods as he can per- 
suade his customers to buy, and no one 
(unless it be the buyer) has any right to 
complain so long as the means he employs to 
push his sales are honest and fair. 

But when the means employed are not 
honest, when, as is unfortunately only too 
often the case, the Japanese trader sells his 
goods under false colours as the goods of 
some one else who has a higher name and 
reputation than himself, then he gives genuine 
cause for complaint, and in this respect the 
Japanese trader is unscrupulous to a degree. 
He takes the Chinese names of old-established 
firms, and he copies the wrappers and trade- 
marks of products firmly established upon the 

* Harry Graham. 

208 japan's place in the far east. 

market, introducing only such small differ- 
ences as are not appreciable or intelligible 
to the Chinese mind. In a country like 
China, where no Trade Marks Act" exists, 
commercial honesty depends entirely upon 
the integrity of the merchants, and it has 
been more or less formally recognised in China 
that "priority of use" is equivalent to regis- 
tration in other lands. But the Japanese trader 
cares for none of these things. Let me give 
examples of the kind of thing which is bring- 
ing such odium upon Japan at the present 

For many years Austria has sold in China 
large quantities of a particular brand of soap 
done up in a wrapper on which is printed a 
wreath of violets. The success of the brand 
some little time ago produced a German 
imitation, which, however, on representation 
being made, was immediately suppressed, and 
a Chinese Taotai was for once induced to 
issue an academical dissertation on the matter 
of false imitations, a copy of which has since 
been enclosed in every box of soap. To-day 
the market is flooded with a cheaper and 



undoubtedly inferior article from Japan, dis- 
tinguishable, no doubt, to the European by 
reason of certain statements in minute Roman 
character upon the wrapper, but quite in- 
distinguishable to the unsuspecting Chinese, 
who is, of course, unable to decipher the 
Roman letters. To increase the deception, a 
garbled version of the Taotai's proclamation in 
Chinese character is inserted inside. In one 
box, containing three tablets of soap, I actually 
found one tablet wrapped up in an old Austrian 
wrapper, the other two being in the imitation 
wrappers manufactured in Japan. 

At Chifu the Japanese found difficulty in 
launching their refined sugar — a new Japanese 
industry — upon the market, owing to the 
reputation which Messrs Butterfield & Swire, 
the long-established purveyors of this article, 
enjoyed among the consumers of North China. 
In this case the Japanese interested in the 
matter approached Messrs Butterfield's com- 
pradore (Chinese manager), and having ascer- 
tained the amount of the commission which 
he received, proposed that he should sell their 
sugar with Messrs Butterfield's, the induce- 


210 japan's place in the far east. 

ment held out being commission at double the 
rates allowed by his own employers, on all 
Japanese sugar sold. 

Another case brought to my notice was 
that of a Japanese firm in Korea, who not 
only copied the trade - marks of the German 
firm of Meyers, who had a branch at Chemulpo, 
but who further adopted their name for 
purposes of commerce ! 

Other cases of pirated trade-marks to which 
my attention was called were those of a 
Japanese firm taking the Chinese characters 
employed by the firm of Carlowitz & Co. 
with a view to pushing the sale of their 
soap, and of another Japanese firm who had 
adopted a trade - mark for their crucibles, 
which was to all intents and purposes in- 
distinguishable from that attached to the 
Morgan crucible of world - wide fame. It 
would, unfortunately, be easy to multiply 
such instances indefinitely if I were to go 
beyond my own experience and appeal to 
other observers. Dr Morrison, for instance, 
telegraphing to 'The Times' on April 2nd 
of the present year (1908), informs us that 


he has remarked " an extension in a certain 
class of Japanese trade — namely, in cheap 
imitations of foreign goods. For example, 
at Kueiyang Fu, the capital of Kuei- chow- 
province, numbers of Japanese inferior counter- 
feits of Messrs Eodgers & Sons' razors are 
sold as British-made " ; and the extent to 
which trade-marks are pirated in Japan it- 
self is sufficiently demonstrated by a despatch 
penned recently by the British Ambassador 
in Tokyo, in which he asserts that in a half- 
hour's walk in Tokyo he can find from ten 
to twenty imitated British trade-marks. It 
is an unfortunate feature of the existing law 
that in the case of a pirated trade - mark 
registered in Japan by the pirate, and left 
unchallenged for a period of three years, no 
remedy should be provided ; it is also un- 
fortunate that the law, apart from what are 
no doubt looked upon in many quarters as 
its defects, is not by any means invariably 
satisfactorily administered.^ 

^ I heard many complaints of the unsatisfactory adminis- 
tration of the law in the Japanese courts, but have refrained 
from adducing such complaints since they might have been 
considered to be partial. The following extract, however 

212 japan's place in the far east. 

The frequency with which charges are being 
brought against Japan on the score of her 
lack of commercial honesty, has served to 
direct the attention of the Government to 
the matter. Two important conventions in- 
tended to deal with the difficult question of 
the piracy of trade-marks have been drawn 
up, and were ratified on May 20th (1908) by 
the representatives of Japan and the United 
States with a view to securing "the protec- 
tion of inventions, designs, trade-marks, and 
copyrights of American citizens and Japanese 
subjects " in China and Korea respectively. But 
even more important, perhaps, than the framing 
of diplomatic instruments are the wholesome 
strictures of her public men against dishon- 
esty in commercial life. The best among her 
commercial men deplore the use of methods 

coming as it does from so ardent an admirer of Japan as 
the 'Japan Mail,' may be accepted as at any rate not 
overstating the case against the courts : " Whether it 
[the patents law] has been intelligently and efficiently 
administered by all the tribunals of justice is another 
question. We do not think that it has. It appears to us 
that some of the courts have shown palpable want of 
experience and discrimination." — 'Japan Weekly Mail,' May 
9th, 1908. 

The old castle at Xagoya. 


to which I have felt compelled to call atten- 
tion, and many have spoken out boldly in 
condemnation of them. In an earlier chapter 
I have noted the appeal made by at least 
one of Japan's merchant princes to his country- 
men upon this matter ;i I will only add here 
the weighty w^ords addressed by the Minister 
of Agriculture and Commerce to the business 
men at Osaka on May 21st of the present 
year (1908), in a speech to which reference 
has already been made : — 

"There is another matter to which I must invite 
you to pay special attention. I refer to commercial 
morality. It is very regrettable to have to rec- 
ognise that there are merchants who even go so 
far as to suggest that falsehood is a licence per- 
missible in business. That is a terrible mistake. 
The code of morality for commercial matters is per- 
haps not required to be so strict as that of religion, 
but there are two vital canons which must be obeyed. 
I mean the strict fulfilment of promises and under- 
takings, and abstention from all attempts to con- 
ceal defects in goods. I am very sorry, too, to 
have to say that some merchants and manufacturers 
register or imitate trade-marks belonging to other 
persons if they find that the marks have not been 

1 See vol. i. p. 20. 

214 japan's place in the far east. 

registered in this country. To thus steal or copy 
trade-marks is simply petty cunning, and it does 
not pay in the long-run, for it means the abandon- 
ing of the possibilities of large and legitimate gains 
in order to snatch a small immediate profit." 

Mr Ishii, Director of the Consular Bureau 
of the Foreign Office, supported the remarks 
of the Minister for Agriculture. Japan, he 
said, must march steadfastly along the path 
of justice, and must allow nothing to daunt 
her. " What, then, is the path of justice ? " 
he demanded. "It is commercial morality," 
was his concluding sentence.^ 

^ In these two speeches there appears to me to be a com- 
plete answer to those apologists for Japan who assert that 
the charges preferred against her, on the grounds of com- 
mercial dishonesty, are nothing more than the figment of 
the distorted imagination of jealous traders, who fear her 
as a commercial rival. If Japanese commercial morality 
were all that it should be, it is scarcely conceivable that 
a member of the Government should be so supremely 
foolish as to suggest to the world at large that it was not, 
by going out of his way to lecture an assembly of the 
business men of the chief manufacturing centre of the 
empire upon the vital mistake of assuming that "false- 
hood is a licence permissible in business." If further 
evidence were needed of the widespread practice among 
the Japanese commercial classes of perpetrating petty fraud, 
it would be found in an official instruction recently addressed 
by the Minister of State for Agriculture and Commerce 


Those who wish well to Japan, who admire 
the many admirable qualities of her people, 
and who willingly acknowledge her claims 
to a place among the great Powers of the 
world, must rejoice at such outspoken con- 
demnation T)f crooked ways by responsible 
men in the State. Japan is destined to play 
a great part in developing the commerce of 
the Far East, and no one will grudge her 
any success which she may achieve, provided 
that her dealings are fair and square and 

That the best men of Japan recognise and 
deplore the unscrupulous ways of many of 
their countrymen is beyond dispute. Forty 
years ago," writes Mr Takashi Masuda, ''the 
Japanese trader or man of business was looked 
down upon. He ranked as a member of the 
fifth class in our social scale ; but now the best 
men in Japan are taking part in business and 
educating their sons for commercial careers, 

to all the Governors of Prefectures throughout the empire, 
urging them to do all in their power to put an end to 
such evil practices as the fraudulent imitation of trade- 
marks and designs ; or in the campaign started in a 
Japanese newspaper, the 'Nippon,' against similar abuses. 

216 japan's place in the far east. 

and the old traditions of clean-handed honour 
and valour, which the best of our race have 
shown in the field of battle, are now being de- 
veloped in commercial life, and we are bringing 
* Bushido ' into business." ^ If a friendly critic 
may venture to doubt the possibility of the 
immediate or complete transformation of a 
characteristic which is undoubtedly deeply 
rooted in certain classes of the nation, he 
may at least applaud the determination of 
men like Mr Masuda to do all that is in 
their power to raise the standard of morality 
of their country. 

It may not, perhaps, be amiss if I con- 
clude this chapter with a few words as to 
the probable effect of the industrial expan- 
sion of Japan upon the trade of Great Britain. 

From a perusal of the foregoing pages it 
will be seen that Japan is bent upon acquir- 
ing a great commercial position in the East. 
It has been made clear, I hope, that she is 
faced with considerable difficulties which must 
have a retarding effect upon her ambitions 

^ ' Japan : its Commercial Development,' by T. Masuda, 
Managing Director of the firm of Mitsui & Co. 


for a time ; but that whereas some of these 
difficulties are likely to remain and probably 
to increase, others are of a temporary nature 
and will pass away. In the former category 
must be placed the labour problem, and in 
the latter her present financial difficulties, due 
in large measure to her recent war. 

The conclusion which I myself deduce from 
all that has been advanced is, that Japan has 
a considerable industrial future before her, but 
that in the long-run her position as an in- 
dustrial Power will be restricted by the com- 
parative poverty of her natural resources, 
while her position as a commercial nation may 
suffer on account of certain national charac- 
teristics. Upon this latter point, however, it 
is not possible to indulge in any confident 

As far as the near future is concerned, I do 
not see any cause for alarm on the part of 
Great Britain at the industrial expansion of 
her ally. In spite of the fact that certain other 
nations have increased their exports to Japan 
at a more rapid rate than Great Britain, she 
is still the largest purveyor of goods to the 

218 japan's place in the far east. 

people of Japan, the value of the goods which 
she sends them having reached a sum of close 
upon £12,000,000 in 1907,— a figure which is 
all the more remarkable when it is remembered 
that in exchange, the people of Great Britain 
took the products of Japan to the value of only 
£2,250,000. One of the growing items of im- 
port into Japan is machinery of all sorts, and 
it is gratifying to note that of machinery im- 
ported in 1907 to the value of £2,827,600, 
Great Britain supplied more than 52 per cent. 
In the spinning-mills which I visited, at least 
90 per cent of the machinery came from Great 
Britain. In many cases — such as the case of 
engines for driving the spindles, &c., in the 
cotton-mills — I was told that English machines 
were preferred to others in spite of their 
slightly higher cost, on account of their 
superior quality. The manager of a cotton- 
mill at Nagoya — a graduate of the Tokyo Im- 
perial University, who had learnt his trade as 
a factory hand in a mill at Oldham — pointed 
with pride to his Musgrave engine of 400 horse- 
power, which had been running day and night 
for nearly twenty years, and which he declared 


was as good as the day he bought it. Great 
Britain likewise supplies Japan with metals in 
large quantities, especially iron and steel, and 
with different varieties of woollen materials, — 
two lines of goods the demand for which should 
continue for many years. The national iron 
and steel works at Wakamatsu are only capable 
of supplying a portion of the home demand, 
and even so are almost entirely dependent 
upon China for their supply of raw material. 
Moreover, it is admitted that under existing 
circumstances iron and steel cannot be pro- 
duced as cheaply as they can be bought from 
abroad, and the superintendent of the works 
has recently declared that unless coal can be 
obtained at 8s. or less a ton — which it cannot 
be at the present time — there is very little 
chance of the foundry being able to turn out 
cheap iron. The following figures show the 
position which Great Britain occupies as a 
purveyor of metals to Japan at the present 
time : — 

Total imports of iron and steel (pig and 

ingot) in 1907 .... £425,500 
Amount supplied by Great Britain . 272,000 

220 japan's place in the far east. 

Total imports, iron and steel (bar and rod, 

plate and steel, &c.) . . . £2,700,000 
Amount supplied by Great Britain . 1,516,000 
Total imports of iron and steel (pipes and 

tubes 353,000 

Amount supplied by Great Britain . 180,000 

As far as the woollen industry goes, it is prob- 
able that Japan will always have to import 
the raw material. I have commented upon the 
dearth of sheep in the country districts, which 
must make itself apparent to the most casual 
observer. Meadows as we know them have 
no place in Japanese landscape, and the wild 
grasses on the hills are said to have a fatal 
instead of a nourishing effect upon sheep. 
Hence it is not surprising to find that the 
number of sheep in the empire amounts only 
to between three and four thousand. It is 
for this reason, perhaps, that the woollen in- 
dustry is in a backward state. I do not re- 
member seeing a single woollen -mill in the 
course of a period of several weeks devoted 
to factory inspection, if I except a factory in 
which machine-knitting was in progress. It 
is possible, however, that a certain amount of 


spinning and weaving takes place by hand. In 
any case, a considerable amount of wool is im- 
ported, this item being valued at £1,465,300 
in 1907, of which amount £444,500 was 
supplied by Great Britain and £583,500 
by Australia. The United Kingdom almost 
monopolises the trade in woollen cloths and 
serges, having supplied these goods to the 
value of — 

£1,499,500 out of a total import of £1,638,600 in 1905. 
£1,353,400 „ „ £1,582,900 in 1906. 

£711,500 „ „ £885,500 in 1907. 

One word as to Japanese competition with 
Great Britain in the Chinese market. By far 
the most important article of import into China 
is cotton — cotton yarn and cotton piece-goods ; 
and it is precisely to this class of goods that 
Japanese manufacturers have turned their at- 
tention during recent years. The result is that 
we have heard vague generalities as to the 
fierce rivalry of Japan in the cotton industry. 
She does, of course, supply China with a certain 
amount of cotton goods ; but the class of goods 
which she is at present able to make does not 

222 japan's place in the far east. 

compete very seriously with British manufac- 
tures. They consist of the heavier and coarser 
fabrics, and compete with American sheetings 
far more seriously than with British shirtings. 
While the bulk of the piece goods supplied by 
America are composed of yarns of twenty 
counts, those supplied by Great Britain are 
composed of yarns of forty counts, and in this 
class of goods the competition of Japan is a 
negligible quantity. In one mill in Japan, 
fitted up with looms with American automatic 
shuttles, the manager complained to me that 
the operatives were unable to manage their 
machines satisfactorily, from which it may be 
deduced that the Japanese mill hand can only 
be counted upon to manage simple machinery. 
In many factories, too, I found mule spindles 
being discarded in favour of ring spindles, 
which seems to show that the manufacturers 
of Japan are concentrating their attention upon 
the production of the coarser and heavier grades 
of goods, as already suggested. It is possible 
that in the future America may be driven by 
Japanese competition to turning her attention 
to supplying cloths of higher count to the 


Chinese market, in which case Japanese com- 
petition will, no doubt, have been indirectly re- 
sponsible for keener rivalry with Great Britain 
on the part of other competitors ; but for the 
present, at any rate, this is an eventuality 
which need hardly be considered. In the 
highest grades of cotton goods, Manchester 
stands unrivalled, and if there is to be any 
competitive article to supply some portion of 
the increasing demand for these goods, it may 
perhaps be found in Japanese silk goods of 
certain classes. There should, however, be 
ample room for both. 

As far as the other great commercial product 
of cotton goes, — cotton yarns, that is to say, 
— Japan is already finding the increased cost 
of production, to which I have already alluded, 
her worst enemy. The three great competitors 
in the Chinese yarn market are India, China 
herself, and Japan. A few years ago Japanese 
yarns were as cheap as Indian yarns, and 10 
per cent cheaper than Chinese. Now, however, 
Indian yarns hold the first place for cheapness, 
Chinese the second, and Japanese the last. It 
is to this rise in price that many attribute the 

224 japan's place in the far east. 

serious depression at present existing in the 
Japanese cotton-spinning industry,— a depression 
which led those engaged in it to adopt a scheme 
of bonus-bearing sales in the Chinese market — a 
scheme put into operation but soon discarded — 
and to knock off night work with a view to 
reducing production. A writer in one of the 
Tokyo journals, describing himself as a leading 
cotton - spinner, gives the following figures, 
which illustrate the loss in sales which has 
been proceeding jpari passu with the increase 
in cost of Japanese yarns : — 

Sales of Cotton Yarns in China. 

Japanese yarns 
Chinese yarns . 
Indian yarns . 


277,135 bales 
170,000 bales 
626,970 bales 

190,868 bales. 
321,675 bales. 
631,298 bales. 

It may be concluded, then, that neither 
Great Britain nor India has much cause to 
anticipate any grave injury at the hands of 
industrial Japan. I have been unable to find 
solid foundation for the fears of those in whose 
imagination the apparition of Japan in the 
character of a damaging commercial rival, has 


assumed portentous and alarming proportions. 
Her people will, of course, secure their share 
of the trade of East Asia ; but what is lost to 
other nations in China by reason of Japanese 
competition in the Chinese market will, in my 
opinion, be made up to them in the increase 
which the commercial and industrial expansion 
of Japan must inevitably create in her own 
foreign trade. 

It may be said of Japan, as Sir Kobert Hart 
once said of China, that the Power which will 
reap the greatest advantages from the regener- 
ation of the Far East, will be the one which 
accords to the people of the Far East "the 
pleasantest sympathy and promises the most 
effective support, coupled with a broad policy 
which looks ahead into a far-off future." 






I LEFT Shimonoseki at 9 p.m. one August even- 
ing, 1906, and set foot on Korean soil precisely 
twelve hours later. At 11 a.m. the Fusan- 
Seoul express steamed out of the Fusan railway 
station, and at 10 p.m. puffed proudly into the 
Korean capital. The journey was interesting — 
and extremely hot. The thermometer, in fact, 
in our compartment refused to drop below 95°, 
and I called to mind the quaint remark once 
made by a native of Siam — We have a season 
in the first, second, and third months that is 
considered very cool. All the inhabitants of 
the exalted city [Bangkok] put on jackets, 


because it is very cool." I felt that if Korea 
had a season which was very cool, it had not 
yet arrived. My companions were an English 
bishop and a young mining engineer, and it 
was perhaps this company which accentuated 
the sense of the ludicrous with which I was 
assailed. To be travelling the whole length of 
Korea in an up-to-date first-class railway- 
carriage in company with one of the highest 
dignitaries of the English Church was a novel 
experience ; but it did not approach in humour 
to the situation which I found existing in the 
capital itself. 

There I found the dream of Hideyoshi all 
but realised, for Korea had become to all in- 
tents and purposes an appanage of Japan. 
This fact admitted of no dispute, and the 
Korean Emperor, despite profuse protestations 
of admiration and affection for the Japanese 
Kesident- General, was perhaps the only living 
soul upon whose mind the obvious had as yet 
failed to dawn Hidden away in a small room 
at the back of the least attractive of all the 
palaces of Seoul, his Majesty still revolved im- 
possible plans in his uneasy mind for the inde- 

228 japan's place in the far east. 

pendence of his kingdom under an international 
guarantee. The passing of Korea, however, 
was accompanied by a series of episodes in 
which the element of comedy was so inextric- 
ably blended with that of tragedy, that the 
sympathetic onlooker is hard put to it to 
know whether to laugh or to cry. It was 
not until victory was finally achieved in Man- 
churia that Japan was in a position to dictate 
to the Korean Government the scheme which 
she had designed for her future welfare. This 
scheme was embodied in a convention con- 
cluded between the two countries in November 
1905, to be described hereafter. The way, 
however, had been paved beforehand, and a 
few words are necessary to describe the events 
which led up to the serio-comic situation which 
began with the arrival of Prince (at that time 
Marquis) Ito at the Korean capital in the 
autumn of 1905. 

Geographical proximity inevitably drew 
Korea into the revolving orbit of New Japan. 
A powerful neighbour firmly established on 
the adjacent mainland, and in a position to 
descend at any moment upon the shores of 



the island empire, presented to the Japanese 
mind a state of affairs not to be tolerated ; 
and strong in her belief in the vital import- 
ance of providing against any such conting- 
ency, she did not hesitate in 1894 to go to war. 
A whole aggregation of circumstances, indeed, 
conspired to light up the hills and valleys of 
Korea with the devouring fires of strife, while 
a hereditary feud of some centuries' standing 
with the Power that disputed with her the 
overlordship of the Hermit Kingdom, gave an 
irresistible impetus to the policy which was 
rapidly driving Japan along the road to war. 
Nor had she been guilty of any miscalculation 
in estimating the relative value of her forces 
and those of her foe. The war very soon 
developed into a procession, and before many 
days were past every Chinese soldier had been 
swept off the face of Korea. 

But if the task of wiping out the soldiery 
of China proved a simple one, the ensuing 
task of reforming and reorganising the inept 
Government of Korea proved very much the 
reverse. Of all things in the world, reform 
in any shape or guise was the very last that 

230 japan's place in the far east. 

appealed to the immutable conservatism of the 
Korean mind ; and after a brief though breath- 
less period, during which measures of improve- 
ment fell like leaves in Vallombrosa, and with 
as little effect upon the land, the reformer 
retired from the unequal contest, baffled by a 
stolid and unyielding resistance against which 
it was found useless to persevere. 

But worse was yet to come. An almost 
bewildering succession of victories had 
attended the Japanese arms ; China, the her- 
editary foe, had been smitten hip and thigh 
and driven effectually from the unhappy 
country whose inability to manage her own 
affairs had been the ostensible cause of all 
the trouble ; but here the tale of triumph 
ceased. The statesmen of Korea were as 
incompetent as ever to conduct the affairs of 
their country to the satisfaction of any one 
but themselves, the troubled waters still made 
Korea an alluring pool for any one to fish in, 
and before many days were past another and 
vastly more formidable Power had stepped 
into the recently vacated shoes of China. 
Henceforth the whole force of Japanese diplom- 


acy was to be concentrated in a wasting and 
protracted struggle against the inexorable ad- 
vance of Russia. 

Into the details of the events which followed 
upon this unpalatable denoument it is not 
necessary to enter. Korea became the un- 
fortunate shuttlecock in a fiercely contested 
game, and was hard put to it to decide which 
of the two pla5rers excited her bitterest aver- 
sion. War over her protesting but helpless 
body became once more an inevitable episode, 
and that it was with Japan rather than with 
Eussia that she finally came to terms was due 
to the greater preparedness of the former, and 
to the paralysing swiftness with which she 
struck the preliminary blow. By a protocol, 
signed a fortnight after the outbreak of hos- 
tilities, the Imperial Government of Korea 
agreed to place full confidence in the Imperial 
Government of Japan, and to adopt the advice 
of the latter in regard to improvement of 
administration in return for a guarantee by 
the latter Power of the safety and repose of 
the Imperial House, and of the independence 
and territorial integrity of the Korean Empire. 

232 japan's place in the far east. 

Eighteen months later, with the victories of 
Japan staring them in the face, the Korean 
Government agreed to accept the services of 
a Japanese financial adviser, of a foreign 
nominee of Japan as diplomatic adviser to 
the Foreign Office, and further decided that 
they would contract no treaties with foreign 
Powers, and grant no concessions to foreign 
applicants, without first consulting the Govern- 
ment of Japan. The threads of the web were 
being carefully woven. ^ 

The future of Korea was sealed with the 
final victories of Japan. That Power had the 
bitter after-taste of the war of 1894 to warn 
her of the absolute necessity of firm and 
determined measures, if the sacrifices which 
she had made at the altar of Hachiman were 
not to prove barren. She had ten years of 
national profligacy and international disturb- 
ance to point to in proof of the danger to the 

^ The protocols here referred to are those of February 23r(i 
and August 22nd, 1904. They provide two of the landmarks 
in the passing of Korea, and are given in full at the end of the 
chapter. Mr Megata was appointed financial adviser, and 
Mr W. D. Stephens adviser to the Foreign Office. 


peace of the world from the prolonged exist- 
ence of an unrestrained and untutored Korea, 
and, better than all, she had a trump card up 
her sleeve in the text of the newly concluded 
alliance with Great Britain, wherein the recog- 
nition of the British Government was given to 
her paramount position in Korea — backed by 
the cogent argument presented by the most 
powerful fleet in the world. 

The conditions were as favourable as could 
be expected, and the way was paved on the 
conclusion of peace for a renewal of the diplo- 
matic onslaught upon the Korean citadel. 
Nevertheless, it may well be doubted whether 
the veteran statesman of Japan, to whose lot 
fell the task of setting in order the Korean 
House, looked with any great satisfaction upon 
the legacy bequeathed to him by his life-long 
friend and predecessor at the Korean Court, 
Count Inouye, who had repaired to Seoul with 
shovel and broom in 1895. However enter- 
taining to the onlookers were the proceedings 
which now occupied the centre of the Korean 
stage, they can have been nothing but a source 

234 japan's place in the far east. 

of intense strain and anxiety to the man to 
whom all Japan looked to carry them to a 
satisfactory termination. 

So much for the relations between Japan 
and Korea prior to the autumn of 1905. The 
Convention of November of that year, which 
was to transfer the conduct of Korea's foreign 
affairs definitely and finally to the Government 
of Japan, had now to be concluded, and it was 
the negotiations leading up to the conclusion 
of this agreement that provide an example of 
the enactment in real life of one of those 
situations which, in any country except Korea, 
are reserved for the more appropriate stage 
devoted to the performance of opera houffe. 

Early in November 1905 Prince I to repaired 
to Seoul, bearing gifts from the Emperor of 
Japan to his brother sovereign of Korea, and 
inter alia a silver vase from the Empress to 
Lady Om,^ — indirect testimony to the success 
which the schemes and pretensions of that 
ambitious lady had already achieved. On the 
15 th the Envoy was closely closeted with the 
Emperor for upwards of three hours — a circum- 

1 The ambitious and masterful consort of the Emperor. 



stance which aroused the suspicions of militant 
young Korea, who made abortive attempts at 
disturbing the peace by delivering perorations 
in front of the palace in favour of the inde- 
pendence of their country. The way having 
been duly paved by the interview of the 15th, 
a document embodying important proposals was 
handed to the Government by Mr Hayashi on 
the 16th — a proceeding which vastly fluttered 
the inmates of the Korean official dovecots. 
Both Prince Ito and Mr Hayashi exercised 
inexhaustible patience in explaining in detail 
to the Cabinet the imperative reasons for 
inaugurating a new state of things as between 
the two countries. Korea's mismanagement of 
her aff'airs had in the past seriously jeopar- 
dised the relations between the two countries 
and imperilled the peace of the world. No 
such situation could be tolerated in the future. 
Such was the drift of a patient and prolonged 
explanation. The arguments used bore the 
impress of an irrefutable logic, the explana- 
tions were lucid and to the point; yet the 
Ministers displayed a paralysing reluctance to 
take the lead in assenting to the principles 

236 japan's place in the far east. 

advanced. The Prime Minister, with exem- 
plary modesty, excused himself on the plea of 
ignorance, inexperience, and incompetence. 
Prince Ito was quick to point out that while 
these deficiencies might justly have been 
pleaded as valid reasons for declining office in 
the first instance, they could scarcely be held 
as a justification for refusing to discharge the 
duties of office when once it had been 
accepted ; and the Minister, quite unable to 
traverse the incisive logic of the argument, 
burst into tears and left the room. It is 
believed that he intended approaching the 
Emperor, but in the confusion of his mind 
caused by his grief he inadvertently stumbled 
into the apartments of Lady Om, and on the 
following morning was dismissed from office. 
The dramatic exit of the Prime Minister from 
the chamber— and as it subsequently appeared, 
from office — caused a profound sensation, and 
appeared to strike the remaining members of 
the Cabinet dumb. No one, at any rate, could 
be found to burn their boats behind them by 
actually signifying assent to the terms of the 
document before them, and the difficulty was 


eventually solved, in accordance with the best 
traditions of comic opera, by Prince Ito declar- 
ing that he would put the question for, and 
accept silence as giving consent. This ingeni- 
ous solution of an apparently insoluble diffi- 
culty gave immense satisfaction to the Cabinet, 
who were thus spared all further exertion 
in endeavouring to make up their minds to 

On the 17th, diplomacy — intricate and pro- 
tracted — was the order of the day. The 
proceedings opened with a luncheon party, 
given by Mr Hayashi to the Korean dignitaries, 
at which an animated discussion on the subject 
took place. Later in the afternoon the whole 
party, including Mr Hayashi, repaired to the 
palace to report progress to the Emperor, who 
had been indisposed on the previous day as 
a result of the long and momentous interview 
on the 15th. Here the discussion of the de- 
tailed proposals of Japan dragged wearily on 
through the long afternoon, the Emperor, 
who remained secluded in another part of the 
palace, being kept informed at frequent in- 
tervals of the progress made. As hour after 

238 japan's place in the far east. 

hour passed by, the sands of Korean independ- 
ence slipped slowly but inexorably through the 
glass; and when at length, at 8 p.m., Prince 
Ito and General Hasegawa, who had been 
consuming their souls in patience until they 
received intimation that the psychological 
moment for their appearance had arrived, 
hurried to the palace, it was felt that the 
supreme moment in the life of at least one 
nation was at hand. The almost unimaginable 
vitality of Korean powers of procrastination, 
however, succeeded in rising to the occasion 
by one last superb display; and it was not 
until the cold grey hours of early dawn that 
the hardly-tried statesmen of Japan emerged 
from a night of strenuous trial, weary but 
triumphant, and happy in the knowledge that 
they took with them in their pockets the title- 
deed to all they had sacrificed so much to 
secure. How the discussion waxed and waned ; 
how, as hour after hour sped by, the Emperor 
sent solicitous messages to the Envoy of Japan, 
urging him to rest lest the great labour he 
was undergoing should impair his health ; how 
the Minister, Yi Wan-yong, at length spoke 


out and deliberately declared that nothing 
remained but to accept in toto the Japanese 
terms ; ^ how the State seal was finally affixed, 
— all these details transpired at a later date, 
as did also the full text of the hardly -won 
convention. Under the provisions of this 
instrument a Eesidency- General was set up in 
Korea, the interests and subjects of that 
country abroad were placed in charge of the 
diplomatic and consular representatives of 
Japan, and the responsibility for her foreign 
affairs was transferred from Seoul to Tokyo.2 

The early reception of this revised edition 
of the Korean polity was not wholly encourag- 
ing. The temerity of the Minister, Yi, in first 
assenting to the terms of the Agreement evoked 
a retort from patriotic Korea in the burning of 
his house ; the students of certain schools, who 
showed signs of unseemly commotion, indulged 
in an enforced holiday from their work ; a little 
harmless stone-throwing brought down upon its 
authors imprisonment and one hundred blows 

^ Some amendments to the original draft were made, but the 
substance was preserved. 

2 For full text see end of chapter. 

240 japan's place in the far east. 

of the bamboo ; and the air became thick with 
rumours of patriotic suicides, Ministerial re- 
signations, revolution, and civil war. No little 
truth, indeed, ran through the tangled skein 
of sensational rumour that now enveloped the 
capital. The Cabinet handed in their resigna- 
tion, the Emperor refused to accept it ; the 
Ministers persisted, the Emperor was obdurate. 
Result : a Gilbertian situation characteristically 
Korean — a Cabinet on strike. A change 
effected in the presidency by the substitution 
of Mr Pak Che Soon for Mr Min Yong Choi, 
whose career as Prime Minister had only 
extended to hours, failing to bring about any 
alteration in the situation, as did also a 
peremptory order from the Emperor for a re- 
sumption of work. Prince I to, at the end of 
a week, evolved the idea of a huge banquet, 
which device was successful in drawing the 
Ministers from their retirement, and in setting 
going once more the creaking wheels of the 
ponderous coach of State. 

Various earnest if misguided patriots, chips 
of the old Korean block, achieved momentary 
notoriety by inspirited protests against the 


new regime, not infrequently followed by 
suicide, — a proceeding which received no small 
encouragement at the hands of the Emperor, 
who accorded the victims State funerals and 
flowery posthumous titles. As was remarked 
at the time, "if his Majesty persisted in 
distinguishing suicides in this enviable manner, 
he would not be unlikely to lose several of 
his subjects." A notable example of this 
attitude was that of Mr Cho Pyong-sik, an 
elder statesman, and at one time special 
Ambassador to Japan on an abortive mission 
for the neutralisation of Korea under an 
international guarantee, who was early in the 
field urging the Emperor to impeach the 
Cabinet for concluding the new Convention. 
Failing in his object, he collected a following 
of malcontents and proceeded to the palace, 
where he made violent remonstrance against 
the new order of things. The following day 
saw the leader and his band seated at the 
gate of the Court of Justice awaiting punish- 
ment. Towards evening a message of pardon 
was received from the Emperor, whereupon 
the stalwart hero proceeded from the Board 


' 242 japan's place in the far east. 

of Punishments to the Board of Decorations to 
renew his protest, and was promptly relieved 
by the Emperor of all further concern in the 
Affairs of State. Within twelve days of the 
signing of the Convention his chief follower, 
Mr Min Yonghwan, ex - Prime Minister and 
Chief Chamberlain, died by his own hand, to 
be followed twenty -four hours later by Cho 
Pyong-sik himself, who "took opium" and 
expired on the afternoon of December 1st. 

At this juncture Mr Yun Chi -ho, acting 
Minister for Foreign Affairs, tendered his 
resignation two or three times ; but as no one 
appeared willing to accept it, he gave up what 
proved to be a useless formality and retired 
to the seclusion of his private residence, 
whence nothing would induce him to emerge. 
Plots for the assassination of Ministers became 
as plentiful as daisies in the spring, and a 
profusion of petitions denouncing the Conven- 
tion flowed steadily in. The regularity, 
however, with which these missives came to 
hand soon led to their being looked upon as 
purely formal affairs of which no notice need 
be taken. Despite such ominous symptoms, 


moreover, it was optimistically declared at the 
end of the year (1905) that tranquillity had 
been restored throughout the country, — an 
assumption which was rudely traversed by 
subsequent events. Beneath the surface feel- 
ing seethed and bubbled, and the spring 
and summer months of 1906 were remarkable 
chiefly for collisions in different parts of the 
country between the supporters of the new 
and the upholders of the old, secretly ap- 
plauded, and in all probability actually 
instigated, by the Court, for the suppression 
of which Japanese gendarmes and troops were 
not infrequently called in. Thus with many 
an expiring splutter did the flame of old 
Korea flicker slowly and painfully out. 

The task of the new Resident -General was, 
indeed, no light one, and the statesmen of 
Japan were fortunate in persuading Prince Ito 
to accept the office, and so to carry forward 
the good work which he had successfully 
begun. An impoverished Treasury accustomed 
to squander its slender funds upon a galaxy 
of palace sycophants and parasites was slow 
to acquiesce in the new restrictions imposed 

244 japan's place in the far east. 

by well-ordered finance, and when the Minister 
of the Household failed to extract from the 
reformed department funds which he considered 
adequate to meet the palace expenses at the 
time of the New Year, he incontinently re- 
signed. An inquiry into the palace entourage 
revealed a motley crowd of between five and 
six thousand petty officials and hangers-on, 
of which number it was decided, as a first 
step, to dismiss about three thousand — a 
reform little calculated to add to the popu- 
larity of its author. 

With other sections of the populace reform 
in some of its manifestations met with con- 
siderable applause. Immense astonishment 
was created, for instance, by an intimation 
that men would in the future be appointed 
to office by selection made with reference 
solely to ability, and not at all to family con- 
nection and Court intrigue ; and when, further, 
several appointments were made in accordance 
with this novel plan, no little satisfaction was 
added to the initial sensation of surprise. An 
announcement, too, to the effect that the 
Crown Prince, whose first wife had died 


childless, would wed again, caused much 
fluttering in the bosom of many a Korean 
maid, while the general interest excited by 
the news was, doubtless, greatly stimulated by 
the issue of an Imperial proclamation, which 
saw the light of day in March (1906), pro- 
hibiting any wedding till the selection of a 
consort had been made. By the late summer 
the number of candidates had been reduced 
by a process of elimination to seven, four more 
were about to be rejected, and the final choice 
made from the remaining three. It may be 
added in this connection, as an instance of the 
profligacy of palace finance, that the Emperor 
decided that a disbursement of 1,200,000 yen 
should be made by the Treasury with a view 
to the suitable celebration of the nuptial 
ceremony. As, however, this sum amounted 
to considerably more than one-seventh of the 
whole revenue of the country for the year, 
Prince Ito very naturally vetoed the odd 
million, allowing the 200,000 — a very ample 
sum under all the circumstances — to stand. 

This, then, was the situation when I arrived 
in the Korean capital in August 1906. With 

246 japan's place in the far east. 

the outbreak of hostilities in 1904 Korea had 
passed under the protection of Japan — an actu- 
ality which was regularised and formally recog- 
nised by the Convention of November 1905. 
The months which had elapsed between the 
signing of this Convention and my visit had 
exhibited the distaste which the Koreans felt 
for this newly acknowledged state of affairs, 
and had also been conspicuous for a display of 
sharp criticism of Japan from others than the 
people of Korea. There was unquestionably 
good ground for criticising the procedure of 
many of the Japanese who poured into the 
country during, and immediately after, the war 
— a matter upon which I shall have a word to 
say later on. But to criticise Japan's presence 
as the suzerain Power was obviously absurd. 
She was there, in the first instance, by right of 
might, but her position gained by might had 
received the recognition and the sanction of the 
world. The Portsmouth Treaty accepted it, the 
text of the Anglo- Japanese Agreement affirmed 
it, the voluntary withdrawal of all the foreign 
legations from Seoul acknowledged it. A fait 
accompli, sealed and confirmed by such practical 


and documentary evidence, was surely scarcely 
worth the trouble of assailing. She was there 
for an avowed and acknowledged purpose — the 
reform of the government of Korea ; a purpose 
in itself excellent in face of the assurance which 
stares boldly from the pages of history, that the 
Korean is quite incapable of cleansing his own 
house. Yet there was in Korea a little band 
of mischievous and obscure persons of foreign 
birth who continued to foment in the credulous 
mind of the Emperor impossible schemes for 
bringing about the withdrawal of Japan, and 
for throwing his country once more into its 
pristine state of chaos and disorder. The last 
of these imbecile enterprises culminated in July 
1907, and resulted, as will be seen, in the abdi- 
cation of the Emperor and the strengthening 
of the hold over the country of Japan. 


Article I. 

For the purpose of maintaining a permanent and 
solid friendship between Japan and Korea, and firmly 
establishing peace in the Far East, the Imperial 
Government of Korea shall place full confidence in 
the Imperial Government of Japan, and adopt the 
advice of the latter in regard to improvements in 

Article II. 

The Imperial Government of Japan shall, in a 
spirit of firm friendship, ensure the safety and 
repose of the Imperial House of Korea. 

Article III. 

The Imperial Government of Japan definitely 
guarantees the independence and territorial integrity 
of the Korean Empire. 

Article IV. 

In case the welfare of the Imperial House of 
Korea or the territorial integrity of Korea is en- 
dangered by aggression of a third Power or internal 
disturbances, the Imperial Government of Japan 
shall immediately take such necessary measures as 
the circumstances require; and in such cases the 

250 japan's place in the far east. 

Imperial Government of Korea shall give full facili- 
ties to promote the action of the Imperial Japanese 

The Imperial Government of Japan may, for the 
attainment of the above-mentioned object, occupy, 
when the circumstances require it, such places as 
may be necessary from strategical points of view. 

Article V. 

The Governments of the two countries shall not 
in future, without mutual consent, conclude with a 
third Power such an arrangement as may be contrary 
to the principles of the present Protocol. 

Article VI. 

Details in connection with the present Protocol 
shall be arranged as the circumstances may require 
between the Eepresentative of Japan and the Minister 
of State for Foreign Affairs of Korea. 


Aeticle I. 

The Korean Government shall engage, as financial 
adviser to the Korean Government, a Japanese sub- 
ject recommended by the Japanese Government, and 
all matters concerning finance shall be dealt with 
after his counsel being taken. 

Article II. 

The Korean Government shall engage, as diplo- 
matic adviser to the Department of Foreign Affairs, 
a foreigner recommended by the Japanese Govern- 
ment, and all important matters concerning foreign 
relations shall be dealt with after his counsel being 

Article III. 

The Korean Government shall previously consult 
the Japanese Government in concluding treaties and 
conventions with foreign Powers, and in dealing with 
other important diplomatic affairs, such as the grants 
of concessions to, or contracts with, foreigners. 



The Governments of Japan and Korea, desiring to 
strengthen the principle of solidarity which unites the 
two Empires, have with that object in view agreed 
upon and concluded the following stipulations to 
serve until the moment arrives when it is recognised 
that Korea has attained national strength: — 

Art. I. — The Government of Japan, through the 
Department of Foreign Affairs at Tokio, will here- 
after have control and direction of the external 
relations and aftairs of Korea, and the diplomatic 
and consular representatives of Japan will have the 
charge of the subjects and interests of Korea in 
foreign countries. 

Art. II. — The Government of Japan undertake to 
see to the execution of the treaties actually existing 
between Korea and other Powers, and the Govern- 
ment of Korea engage not to conclude hereafter any 
act or engagement having an international character, 
except through the medium of the Government of 

Art. III. — The Government of Japan shall be rep- 
resented at the Court of His Majesty the Emperor 
of Korea by a Kesident-General, who shall reside at 
Seoul, primarily for the purpose of taking charge of 
and directing matters relating to diplomatic affairs. 

254 japan's place in the far east. 

He shall have the right of private and personal 
audience of His Majesty the Emperor of Korea. 
The Japanese Government shall also have the right 
to station Kesidents at the several open ports and 
such other places in Korea as they may deem 
necessary. Such Residents shall, under the direc- 
tion of the Eesident-General, exercise the powers and 
functions hitherto appertaining to Japanese Consuls 
in Korea, and shall perform such duties as may be 
necessary in order to carry into full effect the pro- 
visions of this Agreement. 

Art. IV. — The stipulations of all treaties and 
agreements existing between Japan and Korea not 
inconsistent with the provisions of this Agreement 
shall continue in force. 

Art. V. — The Government of Japan undertake to 
maintain the welfare and dignity of the Imperial 
House of Korea. 

In faith whereof, the undersigned, duly authorised 
by their Governments, have signed this Agreement 
and affixed their seals. 


Envoy Extraordinary and Minister 

(Signed) PAK CHE SOON, 

Minister for Foreign Affairs. 

November 17 th, 1905. 




The remaining months of the year 1906 passed 
off in comparative quiet, if we except certain 
disturbances brought about in different parts of 
the country towards the close of the year, as 
the result of a decision on the part of the 
Government to have the taxes collected in the 
provinces forwarded to the capital through the 
agency of the post-office — a method which, no 
doubt, deprived a considerable number of 
Korean gentlemen of accustomed but unlawful 
commission, and which was deeply resented in 

Early in 1907, however, the commotion com- 

256 japan's place in the far east. 

mon to the Korean political atmosphere set in 
again with renewed violence. The Korean 
students in Japan displayed a desire to attract 
public attention upon themselves, and indulged 
in an entertaining little side- display of their 
own. Before the New Year was many days 
old a number of these youths found themselves 
in dire straits, owing to the fact that those who 
had sent them to Japan had ceased to provide 
for their continued existence, and, unable to 
secure the means of livelihood, twenty-one of 
their number resorted to the desperate expe- 
dient of cutting off a finger and forwarding 
the lot in a parcel to the authorities at Seoul, 
with a view to compelling attention to the 
urgency of their position. Far wider attention 
was attracted by a strike and frothy agitation 
by the Korean students in Japan in general, as 
the result of a debate on the subject of the 
expediency of transporting the Korean Emperor 
to Japan, inaugurated by a Japanese student at 
one of the universities. The grievances of the 
students were satisfactorily adjusted ; but in 
the meanwhile Korea itself was once more suf- 
fering from the old predilection of its agitators 


for murder and sudden death. Indeed, by the 
spring of the year it was apparent that the 
position of a Eussian Tsar was a sinecure com- 
pared with the position of a Korean Minister 
of State. 

The Prime Minister was the first to receive 
the attention of the assassins, in the shape of a 
neat little box containing a bomb, which for- 
tunately failed to explode. Less than a month 
later, on March 25th, the Minister for War was 
set upon and fired at with pistols, and as a 
result of the investigations which followed upon 
this outrage, a comprehensive plot was brought 
to light for the murder of the five chief Minis- 
ters who had originally given their consent to 
the Convention of 1905. Two days later a 
conspirator armed with pistols broke into the 
house of the Prime Minister ; and on April 21st 
the death of the Chief of the Accounts Bureau 
in the Imperial Household Department was 
violently brought about, — though this episode 
was believed to have no connection with the 
plot already referred to for the assassination of 
the Cabinet en bloc. The murdered man had, 
in the course of his duty, struck a number of 


258 japan's place in the far east. 

names off the list of paid hangers-on, and had 
naturally incurred their dislike. His violent 
death as a consequence would appear to be a 
sequel exciting no surprise in Korea. 

It is perhaps not astonishing, then, if the 
Ministers conceived the idea about this time 
that place and power, however agreeable in 
theory, had their disadvantages in practice. 
Not only did they constitute a target for the 
knife of the assassin, but by their inherent 
incompetency they were exciting the animosity 
of a wider circle. Thus the II Chin-hoi, a sort 
of political party of Japo-phil Koreans, openly 
inveighed against the corruption and the futil- 
ity of the administration. " The only thing 
for you Cabinet Ministers to do," they declared 
in a memorial forwarded to the Government, 

is to resign your posts and retire into private 
life."^ Mr Pak Che Soon, the Prime Minister, 
seems to have been of the same mind, for he 
repeatedly tendered his resignation, declaring, 
with exemplary modesty, that it was impos- 
sible to carry out Japan's programme of reform 

^ See Professor Ladd's ' In Korea with Marquis Ito,' p. 76. 



SO long as a man of his inferior capacity was 
at the head of affairs. 

On May 20th the Prime Minister's resigna- 
tion was accepted, followed by that of the rest 
of the Cabinet on the 21st, and the result of a 
five hours' consultation between Prince Ito and 
the Korean Emperor on the 22nd was a new 
Cabinet under the leadership of Mr Yi Wan- 
Yong, late Minister of Education, — the Minister 
who had first urged the acceptance of Japan's 
terms in 1905, — and including later on Mr Song 
Pyong-chun, leader of the II Chin-hoi. 

A plot for the assassination of the new 
Ministry miscarried, and for the first time, in 
all probability, in the history of Korea, a 
Cabinet met determined upon shaping a def- 
inite public policy, and freed from the baneful 
influence of the Court. With the change of 
Ministry a new system had to all intents and 
purposes been established. In future the con- 
sent and counter-signature of all the Ministers 
was to be necessary to give force to " all laws. 
Imperial edicts, the budget, the final account, 
any and all expenditure not provided for in the 

260 japan's place in the far east. 

budget, the appointment, dismissal, and pro- 
motion of Government officials and officers, 
amnesty and pardon, and other affairs of State." 
The coup was a bloodless victory for the repre- 
sentative of Japan. 

It was well for Korea that her affairs were in 
the hands of a body of sensible men when the 
situation created by the Emperor's crowning 
act of folly had to be dealt with. The sud- 
den appearance of a Korean delegation at The 
Hague Peace Conference is a matter of history. 
In itself the proceeding was farcical, but in 
its sequel it proved of no little moment to 
Korea. The facts may be briefly summarised. 

Unbeknown to all save his immediate en- 
tourage of Court intriguers, and instigated 
presumably by the same mischievous foreign 
advisers who have played so sorry a part in the 
recent history of Korea, his Majesty despatched 
a mission to The Hague in the hope of exciting 
the compassion of the world, for what was to be 
described as the miserable plight of a helpless 
people under the tyranny of Japan. Since the 
conduct of the foreign affairs of Korea had 

THE emperor's INTRIGUES. 261 

been delegated by treaty to Japan, the mission 
was, of course, without authority, and was, as 
it was bound to be, ignored. The fatuous 
intriguing of the Emperor, however, made it 
clear that a position which admitted of Imperial 
meddling of this kind could no longer be 
tolerated by Japan, — a state of affairs which 
was realised by the Cabinet as soon as ever 
news of the appearance of the mission at The 
Hague reached Seoul. Thereafter the political 
atmosphere of the capital became highly 
charged. The Emperor denied all connection 
with the mission ; but the day for tactics of 
this kind had gone by, and on July 6th the 
Cabinet fearlessly informed his Majesty that he 
was responsible for a crisis of the greatest 
gravity in the affairs of his country, and that 
immediate action must be taken to propitiate 
Japan. It is said that his Majesty broke up 
the meeting in anger ; and his blind belief in 
his mischievous advisers is illustrated by his 
act on the morrow of sending a telegram to 
the mission at The Hague, in which he declared 
that he was a prisoner in his palace, surrounded 

262 japan's place in the far east. 

by the soldiers of Japan. Thereafter he cut 
himself off from his Cabinet and refused all 
communication with them. 

The enforced lull thus brought about in 
the Korean capital was rudely broken in upon 
by news from Tokyo to the effect that the 
Japanese Emperor had decided to despatch his 
Foreign Minister, Viscount Hayashi, to the 
scene of trouble. The effect of this ominous 
news was magical. On July 16th the Cabinet 
held a meeting of six hours' duration, at which 
it was decided that the only step possible 
was the abdication of the Emperor. This 
decision was conveyed to his Majesty on the 
17th, and further urged upon him by the whole 
Cabinet on the 18th. How long he would have 
remained obdurate it is impossible to say, had 
not the arrival of Viscount Hayashi on the 
evening of the 18th stirred him to feverish ac- 
tion. The Cabinet continued insistent, — he had 
brought his country to the brink of a precipice 
the bottom of which could not be seen ; even 
now the Foreign Minister of Japan was alight- 
ing in the capital of Korea ; there was one way, 
and one way only, out of the present dilemma 


— his Majesty must resign. At 3 a.m. on the 
19th his resistance came to an end, and he 
signified his intention of abdicating in favour 
of the Crown Prince. With all speed the 
Imperial edict was made known, and by noon 
of the same day all Korea knew that his 
Majesty Yi Hy-eung had ceased to reign. 

"We have been in succession to our ancestors on 
the throne for forty-four years, and have met with 
many disturbances," — so ran the Imperial edict. " We 
have not reached our own desire. While Ministers 
are frequently improper men and progress is uncon- 
trolled by the right men, the times are contrary to 
natural events. A crisis extremely urgent in the life 
of the people has arisen, and the progress of the State 
is more than before imperilled. We fear a danger 
like that which befalls a person crossing ice. Fortu- 
nately we have a son endowed by nature with brilliant 
virtue, and well worthy with being charged with plans 
for the development of the Government, to whom we 
transfer our inheritance sanctioned by the customs of 
ancient times. 

"Therefore, be it known as soon as proper to be 
done, we will hand the affairs of State over to the 
Crown Prince as our representative." 

Thus ended the reign of a man whose "youth 
had been spent under the pernicious influence 

264 japan's place in the far east. 

of eunuchs and Court concubines and hangers- 
on, whose manhood had been dominated by 
an unceasing and bloody feud between his wife 
and his father, whose brief period of inde- 
pendence had been one orgy of misrule, and 
whose latest years had been controlled by 
sorceresses, soothsayers, low-born and high- 
born intriguers, and selfish and unwise foreign 
advisers."^ No wonder that in the end circum- 
stances had been too strong for him, and that 
he had been obliged to renounce his throne. 
His character moulded under such evil influ- 
ences can be imagined, nor did he stultify it in 
this the crowning crisis of his life. The news 
of his abdication had, of course, been the signal 
for the breaking loose of the forces of disorder, 
and throughout the 19th disturbance reigned 
in Seoul. Towards evening the following 
message was sent by the abdicating Emperor 
to Prince Ito : — 

"In abdicating my throne, I acted in obedience to 
my conviction, and not in deference to any outside 
advice or pressure. 

" During the past ten years it has been my intention 

^ Professor Ladd— ' In Korea with Marquis Ito.' 


to transfer to the Crown Prince the conduct of State 
affairs, but, no opportunity presenting itself, my 
intention remained to this day unrealised. Believing, 
however, that the opportunity has now arrived, I have 
abdicated in favour of the Crown Prince. In taking 
this step I have followed the natural trend of events, 
and the result is matter for congratulation on account 
alike of my dynasty and of my country. Yet I am 
grieved to observe that some of my ignorant sub- 
jects, labouring under a mistaken conception of my 
motives, and in an access of misguided indignation, 
have been betrayed into acts of violence. In reliance, 
therefore, upon the Resident-General, I entrust him 
with the power of preventing or suppressing such 
acts of violence." 

Yet even while lie was penning these contrite 
words he was actually arranging for the assass- 
ination of the whole of his Cabinet before the 
dawn of another day. The plot failed, the 
Prince Imperial was duly crowned, and the 
atmosphere of Seoul was cleared by the trans- 
ference from public to private life of the 
monarch who had done more than any other 
individual to hasten the downfall of the country 
over which he reigned. 

The removal of the Emperor, however, was 
not the only advantage which accrued to Japan 

266 japan's place in the far east. 

as a result of the abortive mission to The 
Hague. It was felt that the time had come 
when the shadowy control which Japan wielded 
over the mechanism of Korean Government 
must be converted into a reality, and on July 
23rd Prince Ito submitted the provisions of 
a new Agreement to the Cabinet. Some 
reluctance was inevitably shown by the repre- 
sentatives of Korea ; but it was realised that 
the time for expostulation was past, and at 
1 A.M. on the 24th the new Convention re- 
ceived the sanction of the Emperor, and Korea 
passed from Japan's ' protection under Japan's 

The Convention of July 24th, 1907, consti- 
tutes a turning-point in the history of Japan 
in Korea. By previous Conventions she had 
been free to advise but not to enforce reform in 
the administration of Korean affairs ; by the 
Convention just signed the Japanese Resident- 
General became, to all intents and purposes, the 
uncrowned king of Korea. The altered state 
of affairs could not have been better put than 

^ For terms of the Convention see end of chapter. 


it was in a leading article in ' The Times ' of 
July 29tli, 1907 

"There is, no doubt, a technical and formal dis- 
tinction between the control which Japan will hence- 
forth exercise over Korea and annexation ; but except 
to diplomatists talking among themselves, the differ- 
ence may seem so small as to be wellnigh negligible. 
By the terms of the Convention Japan takes over 
the whole substance of power in the executive, the 
judicial, and the legislative fields of the Korean 
State. . . . The administration, the enactment of 
laws, the transaction of important State business, 
and the appointment of all high officials, are expressly 
made subject to the Kesident-General's approval. No 
member of the Government can be appointed without 
his recommendation ; no foreigners can be employed 
without his assent." 

The first reform of importance enacted under 
the new regime was one which provoked a 
state of serious disaffection throughout the 
country, but it was one which was undoubtedly 
called for — namely, the disbandment of the 
Korean army. The Imperial rescript promul- 
gated on the night of July 31st assigned as 
the reason the necessity of economy : the real 

268 japan's place in the far east. 

motive in the mind which inspired the rescript 
was the knowledge that in Korea the raison 
d'etre of an army was not that generally 
accepted in civilised communities — namely, the 
protection of the State — but, on the contrary, 
the fomenting of disturbance and disorder. 

The year which has elapsed since Japan took 
over the complete direction of Korean affairs 
has seen the laying of the foundations of many 
reforms. An entirely reorganised police force, 
modelled on that of Japan and controlled by 
J apanese, has taken the place of the old force ; 
new methods of collecting taxes have been in- 
troduced ; a drastic reorganisation of the local 
administrative system has been brought about ; 
a complete reform of the judicial system intro- 
duced, modelled on Japanese lines and largely 
officered by Japanese judges. Large sources of 
revenue, such as mines and forests, hitherto 
monopolised by the Imperial Household, have 
been transferred to the State ; and minor changes, 
such as the removal of their top-knots by the 
Emperor and other members of the royal family, 
and the raising of the legal age for marriages 
to seventeen in the case of men and fifteen in 



the case of women, have seen the light of day. 
With a view to oiling the wheels of the machine 
of State a large number of Japanese have been 
introduced into the different departments of 
public life, and each Minister of State is assisted 
in his duties by a Vice-Minister of Japanese 
nationality. In November the Korean Govern- 
ment published a declaration of policy. High 
and low, they declared, must unite with one 
heart to discharge the administrative functions 
of the Empire ; old and obsolete customs must 
be abandoned ; productive enterprises must be 
made the foundations of national strength ; 
administrative reform must be effected ; and 
agricultural and manufacturing enterprise must 
be given a new lease of life. The judiciary 
must be perfected, and men of ability must be 
selected from all classes and appointed to suit- 
able offices. 

A visit by the Imperial Prince of Japan to 
Seoul in the autumn, followed by the departure 
of the Crown Prince of Korea to Japan in 
December, there to receive a modern education, 
did something to mitigate the hatred and sus- 
picion of the Koreans for Japan; while the 

270 japan's place in the far east. 

latter country showed her determination to 
do all she could to promote the welfare of the 
new order in Korea, by granting a sum of 
£2,000,000 for purposes of Government reform, 
to be spread over a period of six years. 

But if the framing of measures of reform 
went merrily forward, circumstances warred 
against their practical adoption. The storm 
of indignation which burst over the country 
with the disbandment of the army gathered 
force instead of dissipating as the weeks rolled 
by. As day by day the weary tale of insur- 
rectionary outburst and murder was told, feel- 
ing in J apan rose strongly in favour of a drastic 
solution of the Korean problem ; but with un- 
exampled patience Prince I to adhered unflinch- 
ingly to his policy of refraining from annexa- 
tion, and it was not until the early summer 
of the present year (1908) that he at last 
admitted that strong measures must be taken 
to deal with what had obviously now become 
a state of chronic insurrection. Whereas the 
police had up till now formed the first line and 
the military the second in fighting the forces 
of disorder, this arrangement was now to be 


reversed, and additional troops were drafted 
into the country. The seriousness of the situa- 
tion with which Japan was faced is sufficiently 
shown by the fact that during May (1908) 
there were no less than fifty-three encounters 
between Japanese troops and insurgents, in 
which 549 of the latter and 30 of the former 
were killed. In spite of these drastic measures, 
the rebellion died hard ; and it was officially 
reported that between the 7th and 9th of July 
there were twenty-six collisions, in which 106 
insurgents lost their lives and 51 were taken 
prisoners ; while in the middle of the month 
the 'Seoul Press' declared that ''many thou- 
sands of people were still under arms, and that 
they could not help recognising that the sup- 
pression of the trouble must require at least sev- 
eral months more of hard and persevering work 
on the part of the military and the police." 

Nevertheless, in spite of the somewhat de- 
pressing outlook caused by prolonged disturb- 
ance and civil strife, there are not lacking 
symptoms of the advent of a better state of 
things. Not least hopeful is the attitude of 
the new Emperor. In a remarkable speech, 

272 japan's place in the far east. 

delivered on June 15th to the Provincial In- 
spectors, he declared that on ascending ^the 
throne he had sworn to the spirits of his an- 
cestors that progress should be the keynote of 
the national policy. By the neighbourly assist- 
ance of Japan this programme had been^duly 
inaugurated. But owing to a lack of mutual 
understanding between rulers and ruled, there 
had occurred disturbances which were not only 
sacrilegious towards the ancestral spirits, but 
were also most ungrateful towards Japan, which 
had rendered valuable aid to Korea. They 
must do all that lay in their power to imbue 
the people with a clear understanding as to the 
objects which the Government had in view. 

As tangible evidence of his feelings towards 
Japan, his Majesty ordered a sum of 100,000 
yen to be distributed among the unfortunate 
people, Koreans and Japanese alike, who had 
suffered at the hands of the insurgents. 

If, then, the outlook is not, as yet, altogether 
bright, a considerable change for the better 
has been brought about in the prospects of 
Korea. The scheming and intriguing per- 
sonality of the ex-Emperor has been removed 



from the theatre of actual operations ; a mon- 
arch, capable apparently of appreciating the 
situation, reigns in his stead ; a Cabinet of 
Koreans of progressive ideas, stiffened by a leav- 
ening of Japanese subordinates, stands at the 
head of affairs, pledged and bound by treaty to 
carry out the reforms framed by the Japanese 
Eesident-General, — the coach of State, in other 
words, is at last ready to move forward under 
the expert guidance and control of Japan. 

It remains for me to say a word as to the 
criticisms which I found being levelled against 
the suzerain Power. To criticise Japan's pres- 
ence in Korea is, as I have already pointed out, 
obviously absurd, and it is only when we come 
to the methods employed by her that solid 
ground for criticism is reached. The red-tape 
disease is acute in Japan, and is always pro- 
ductive of absurd and petty regulations. The 
following story, which I heard in Japan, is 
illustrative of the tendency of the Japanese 
mind to entangle itself in the minuticB of the 
law. A farmer bought a railway-ticket of the 
value of a few pence. Being prevented from 
travelling at the last moment, he changed the 

VOL. II. s 

274 japan's place in the far east. 

date on the ticket and used it on the following 
day. Having the bad fortune to be discovered 
in his petty fraud, he was had up by the rail- 
way company and sentenced to three weeks' 
imprisonment. Indignant at the sentence, he 
appealed, only to find that the decision of the 
lower court was upheld. Still incensed under 
a sense of wrong, he carried his case to the 
highest court. The High Court of Appeal, 
mindful of its dignity, brought to bear upon 
the matter the whole of its immense knowledge 
of the law. The railway in question was a 
Government railway, the ticket was therefore 
a Government document — the logic of this 
reasoning was beyond dispute. The law de- 
clared that " the altering or defacing of any 
Government document" was a most serious 
offence, and laid down the penalty to be 
exacted of those who were guilty of such a 
crime. The law was clear — hard labour for 
fourteen years was the penalty ordained ; the 
farmer was sentenced accordingly ; great is 
the majesty of the law ! 

After this one is not surprised at the attach- 
ment of the J apanese for minute and harassing 


regulations. As in Japan, so in Korea. De- 
spite the difference in longitude between the 
two countries, I found Tokyo time enforced in 
Korea. I found the people ordered to smoke 
short pipes, and to discard their immemorial 
robes of white for garments of a more dusky 
hue. Such regulations are ridiculous to a 
degree. They have been tried before and have 
failed. They will undoubtedly fail again. The 
Korean has an inexplicable but unalterable 
preference for white, and, with or without the 
sanction of the law, white garments he will 
wear. To-day, as in the past, the most striking 
feature of the streets of Seoul is the leisurely, 
white-robed gentleman, with his quaint, black, 
horse-hair hat, and his most noticeable adjunct 
is his elongated pipe. 

Such things are, however, after all, matters 
of minor importance ; far more serious ques- 
tions were those of the power and procedure 
of the military, and the attitude of the Japanese 
immigrants towards the Korean people. With 
the sacrifices of the late war still fresh in the 
memory, the attitude of the military party in 
Japan was undoubtedly, for a time, the source 

276 japan's place in the far east. 

of no little anxiety to the civil authorities. In 
the early summer of 1906 a stormy battle 
raged between the two factions in the Govern- 
ment over the question of the opening of 
Manchuria, and the eventual triumph of the 
advocates of the open door is said to have 
been far from palatable to the military junta. 
In Korea it is common knowledge that the 
feelings and the just claims of the natives met 
with scant consideration where the military 
authorities were concerned. Land was taken 
regardless of any considerations except the 
supposed necessities of military strategy, and 
only too often little enough compensation 
found its way to the pockets of the lawful 

And if the high-handed procedure of the 
military was galling to the people of Korea, 
still more so was the behaviour of the stream 
of immigrants which surged into the country. 
No one knew better than the man to whom 
all Japan looked to solve the Korean problem 
the danger of licence on the part of his own 
nationals, and no one tried harder to put an 
end to it. " There has been much to censure 


in the conduct of our nationals hitherto in 
Korea," declared Prince Ito on a public occasion 
in Tokyo. " The greatest indignities have 
been put upon the Koreans, and they have 
been obliged to suffer them with tears in 
their eyes. Now that this Empire has taken 
upon itself the protection of Korea, this 
improper behaviour calls for the utmost 

To I those who apprehend unfair treatment 
on the part of Japan towards other countries 
where Korea is concerned, the J apanese Govern- 
ment can point confidently to its action during 
the past two years. It is hardly conceivable 
that, had any European country stood in 
the shoes of Japan, annexation pure and un- 
disguised would not have taken place. In 
another connection, too, the acceptance by 
Japan of .the treaties existing between Korea 
and other countries at the time of the con- 
clusion of the Convention of 1905 is hardly 
compatible with the suggestion, which has 
been mooted from time to time, that she 
intends establishing a Customs union between 
herself and Korea to the disadvantage of 

278 japan's place in the far east. 

the other trading nations. But perhaps the 
greatest guarantee of the procedure of Japan 
is to be found in the perception and sagacity 
of the great statesman at the Korean helm. 
"It is not with regard to Korea alone/' said 
Prince Ito, in addressing the members of the 
foremost political party in Japan, "but with 
regard to the whole problem of the Far East, 
that nothing opposed to the sentiment of 
the Powers should be done. No strong 
country whatever can march forward inde- 
pendently and at its own arbitrary conven- 
ience. If Japan, puffed up by her victories 
in war, should forfeit the sympathy of the 
Powers, she will be laying up for herself 
misfortune in the future." ^ 

It may be well to point out in conclusion 
that there comes a point in the history of 
nations when statecraft becomes powerless 
to shape their destiny. The question as to 
whether Korea will ever emerge from her 
present time of trial as an independent nation 
will be determined by forces other than those 
of statesmanship. In 1904, at the beginning 

^ Speech to the Seiyu-kai, February 5th, 1906. 



of the war, there were approximately 31,000 
Japanese in Korea. To-day, according to a 
Japanese investigator, there are upwards of 
106,000, exclusive of those in the two prov- 
inces bordering the Sea of Japan and lying 
on the north-east coast, to which his in- 
vestigations did not extend. A census taken 
in the spring of 1907 showed that the Korean 
population fell short of 10,000,000 souls. Will 
Japanese immigration continue and increase ? 
And if so, will the Japanese eventually become 
the predominant element in the population? 
It is impossible to say, but the probability 
of such an eventuality is one which must 
clearly be taken into consideration in any 
attempt to answer the question as to what 
will be the future of Korea. ''There is 
scarcely a district throughout Korea," declared 
Mr Kodama Hideo on a recent occasion, "that 
has not its quota of twenty or thirty Japanese 
engaged in trade and agriculture. These little 
Japanese communities have formed leagues 
for social purposes, and wherever sufficiently 
numerous exercise municipal authority over 
their own affairs." "In the region of Taijon," 

280 japan's place in the far east. 

declares Mr Shiga, the Japanese investigator 
already referred to, "a colony of 15,000 
Japanese has been formed, and the district 
now resembles a little Japan. Throughout 
Korea," he adds, " elementary schools have 
been constructed or are in course of con- 
struction, and there are other evidences that 
the sometime large floating population of 
adventurers is being replaced by permanent 
and orderly settlers." 

More than a year ago Japanese enterprises 
in the Korean capital alone were declared 
to have an aggregate registered capital of 
37,030,000 yen, and the formation of a "Far 
Eastern Colonisation Company " with a Govern- 
ment subsidy, under the auspices of Marquis 
Katsura, promises to give a further impetus 
to the importation of both colonists and 
capital in the near future. The bill sanction- 
ing the formation of this Company passed 
both Houses of the Diet in March 1908. 
The Company is to enjoy the patronage of 
Korean and Japanese directors, and the prime 
object of the promoters is to engage in agri- 
culture in Korea, though collateral under- 


takings are also to be carried out ; and the 
immediate programme of the Company is to 
acquire about 17,000 acres of land at a cost 
of a little over £100,000, and to devote 
£65,000 to surveying, building, and the acqui- 
sition of implements. Colonists are to be 
sent out under the auspices of the Company 
and located in groups among the Koreans, 
with a view to the introduction of improved 
methods of farming throughout the country. 
It is interesting to note that in answer to 
a member of the Committee appointed by 
the Lower House to consider the bill, who 
wished to know how the objects of the 
Company were to be attained seeing that 
neither by law nor by treaty did foreign 
nationals enjoy the privilege of owning real 
estate in Korea, the representative of the 
Company replied that the matter was under 
negotiation between the Governments of the 
two countries, and that a favourable outcome 
was anticipated. 

All these facts, taken together, seem to 
suggest that Japan is colonising Korea in 
earnest. The sparsely inhabited mainland 

282 japan's place in the far east. 

appears, indeed, to constitute the natural outlet 
for the surplus population of the island empire. 
The population of Japan is increasing by half 
a million annually, 60 per cent of her people 
are engaged in agriculture, her culturable land 
is already intensively cultivated, emigration to 
Western lands excites the open antagonism 
of the highly organised working classes of 
Western democracies and creates delicate diplo- 
matic situations : what more likely, then, than 
that the stream of Japanese emigrants should 
flow in steadily increasing volume to the ad- 
jacent waste lands of Korea? 

If this forecast be correct, then, can it be 
doubted that the Korea of history, the land of 
the Koreans ruled by a Korean dynasty, the 
Korea constituting a separate entity among 
nations, has passed away never to return? 
It might be affirmed by those who are proof 
against sentiment, that the compensations 
would outweigh the loss consequent upon 
such a historical consummation. 



The Governments of Japan and of Korea, desiring 
to speedily promote the wealth and strength of 
Korea, and with the object of promoting the pros- 
perity of the Korean nation, have agreed to the 
following terms: — 

1. In all matters relating to the reform of the 
Korean administration, the Korean Government shall 
receive instruction and guidance from the Eesident- 

2. In all matters relating to the enactment of laws 
and ordinances, and in all important matters of ad- 
ministration, the Korean Government must obtain 
the preliminary approval of the Eesident-General. 

3. There shall be clear differentiation of the 
Korean Executive and the Korean judiciary. 

4. In all appointments and removals of high offic- 
ials the Korean Government must obtain the consent 
of the Eesident-General. 

5. The Korean Government shall appoint to be 
officials of Korea any Japanese subjects recommended 
by the Eesident-General. 

6. The Korean Government shall not appoint any 
foreigners to be officials of Korea without consult- 
ing the Eesident-General. 

7. The first article of the Agreement signed on 
August 22, 1904, shall be rescinded. 

[The article here referred to is as follows: "The 

284 japan's place in the far east. 

Korean Government shall engage as financial adviser 
to the Korean Government a Japanese subject re- 
commended by the Japanese Government, and all 
matters concerning finance shall be dealt with after 
his counsel has been taken." Article 5 of the new 
Convention renders superfluous the above provision 
of the 1904 Agreement.] 

In witness of the above the undersigned Pleni- 
potentiaries, duly accredited by their respective 
Governments, have signed the present Convention : — 

Done at Seoul, the 24th day of the seventh month 
of the 40th year of Meiji, corresponding to the 24th 
day of the seventh month of the 11th year of 

(Signed) ITO HIROBUMI, Marquis, 
Resident- General. 

Prime Minister of Korea. 




In August 1906 it was officially intimated by 
the Japanese Government that from September 
1st — six months before the time fixed upon 
by treaty for the complete evacuation of the 
country^ — Manchuria would be open, so far 
as they were concerned, to the trade of the 
world. The fierce struggle between the civil 
and military parties in the State had been 
fought and won in the Council Chambers of 
Tokyo in the early days of summer, and the 

^ In accordance with the terms of the Fukushima-Ovanovsky 
Convention, all troops were to be withdrawn from Manchuria 
by April 15th, 1907, with the exception of railway guards, 
at the rate of fifteen men per kilometre. The length of line 
in Japanese hands entitles her to continue to maintain a 
force of one division in the country. 

286 japan's place in the far east. 

opening of Tairen (late Dalni) in September, 
following upon the opening of Mukden earlier 
in the year, served merely to confirm what had 
long before been an open secret in the Japanese 
capital — namely, the victory in Council of the 
civil party. It is not intended to discuss here 
the motives by which the statesmen of Japan 
were actuated in framing their post-bellum 
policy. They had long since recognised the 
necessity of governing their policy in the Far 
East by principles acceptable to the majority of 
the Powers, and whether such principles be to 
their own liking or not is, for the time being, a 
question which need not be discussed. It is suffi- 
cient to know that — as far as those in authority, 
at any rate, are concerned — it is recognised 
that '*no strong country whatever can march 
forward independently and at its own arbitrary 
convenience," and that throughout the Far 
East, consequently, Japan should do nothing 
''opposed to the sentiment of the Powers."^ 

The attitude of the Japanese Government 
was apparently scrupulously correct. Were 

Speech by Prince Ito to the Seiyu-kai, February 5th, 1906, 
already referred to in chapter xxix. 


there, then, any foundations for the accusations 
which were being levelled against the Japanese 
of bad faith ? There is no need to waste 
time in detailing the charges that were being 
brought : any one who had breathed the atmo- 
sphere of the Far East during the summer of 
1906 could not fail to have been conscious 
of the feeling of distrust of Japanese procedure 
in the three eastern provinces, which permeated 
the whole body of Far Eastern commercial 
opinion. Circumstances, moreover, had con- 
spired to focus the public gaze upon Manchuria. 
The war created a vast demand on the part 
of both contending armies for canvas and 
cotton goods of all descriptions. The importers 
of Shanghai bought heavily in anticipation of 
a continued and increased demand at the 
conclusion of hostilities ; but in place of the 
expected boom came depression, and an over- 
stocked Shanghai shook an angry but impotent 
fist at a stagnant market. When men are 
willing to sell in a glutted market at a loss 
of 15 per cent, all is obviously not well ; and 
I found the importers of piece-goods reduced 
to these straits because Manchuria was not 

288 japan's place in the far east. 

behaving as she ought to do, and had ceased 
all demand for foreign goods. 

With a view, therefore, to making certain 
investigations upon the spot, I repaired with 
such speed as the tyranny of the Chinese 
coasting service permitted to the treaty port 
of Chifu, and on calling at the offices of Messrs 
T. Akiho & Co. and Messrs Ching Ki & Co., 
the companies enjoying at the time the mon- 
opoly of the transport traffic between the 
Chinese ports and th6 Kwan-tung promontory, 
learnt from the latter that they had a boat 
leaving almost immediately for Tairen. Not 
recognising in the names of either of the two 
companies any connection with the well-known 
shipping lines of the Far East, and knowing 
something from past experience of the infinite 
possibilities in dubious directions of Chinese 
shipping in Chinese waters, I hazarded some 
inquiry as to the nature of the boat. Oh," 
said the clerk in charge, in irreproachable 
pidgin English, "her b'long number one topside 
slip," and he added, when pressed for further 
information, that she had a displacement of 



at least 350 tons, and that she was quite safe, 
since, if the weather proved nnpropitious, she 
would not sail. With this Delphic assurance, 
the humour of which was apparently hidden 
from the declaiming oracle, and the promise 
of three out of the four cabins she was said to 
possess for the use of myself, my companion, 
and our two servants, we had perforce to be 
content, and in the waning light of evening 
we set forth in a sampan to find our ship. Our 
misgivings were more than justified. A grimy 
deck rose little above the level of our pitching 
sampan ; such parts of it as were not occu- 
pied by funnel, steering apparatus, and other 
troublesome if necessary gear, had already 
been appropriated by forty-eight huge crates of 
huddled-up and loudly expostulatory poultry ; 
and last, but not least, the three cabins for 
ourselves and our servants turned out to be 
three miniature bunks crowded into one very 
confined deck-house. Fortunately, the moon 
looked down serenely upon a placid sea, and after 
a debauch upon cold chicken and soda-water 
(not provided by the Company), we turned in 


290 japan's place in the far east. 

to enjoy such slumber as the early rising 
and vociferous denizens of the farmyard out- 
side allowed. 

Perhaps the dominant impression produced 
by a visit to Tairen is one of disappointment. 
So much has been heard of the colossal im- 
portation of Japanese goods duty free through 
this inlet to the three eastern provinces, that 
one at least expects to find signs of consider- 
able activity. But to all appearances the 
Tairen of to-day differs little from the Dalni of 
pre-war days. The same neatly laid-out streets 
and villa-like houses, a little the worse for 
wear, and defaced here and there by wars 
rough handling, present to the gaze the same 
picture of an exotic plant that has failed to 
draw strength or inspiration from its sur- 
roundings. The pretentious buildings that 
housed the municipal ofiicials of Russian days, 
and now shelter the ofiicials of the Japanese 
administration, are still by far the most im- 
posing feature of the town, and though the 
wharves appear to be admirably adapted to the 
needs of an ambitious commercial port, and 
to invite the custom of the trading argosies 


of the East, a few Japanese coasting-vessels 
were all that were to be seen, perfunctorily dis- 
charging Japanese cargo into excellent though 
meagrely stocked go-downs. Such Chinese mer- 
chants as I visited stocked almost exclusively 
Shanghai goods, preferring to leave to their 
Japanese brethren the handling of the goods 
of that country. If the products of Japanese 
mills had poured into Manchuria, they had 
evidently not stopped here. Signs of Govern- 
ment intention were not wanting, it is true ; 
but for the present these found expression 
chiefly in the planting of the surrounding hills 
with trees, and in the promulgation of building 
laws banning the use of anything but brick or 
stone in all future building enterprise. 

Away to the south Port Arthur nestles in 
an amphitheatre of bare and forbidding hills. 
It speaks so plainly and it tells so much, that 
it is difficult to resist the temptation to linger. 
Those who knew the town as the home of the 
careless, light-hearted, laughter-loving Russian, 
who had seen a vast marshy expanse to the 
west of the old Chinese town filled in and con- 
verted into the site of palatial buildings, con- 

292 japan's place in the far east. 

structed in accordance with the grandiose 
conceptions common to Kussian empire- 
builders, and who remember the stacks of 
wooden cases which covered the wharves a 
little prior to the war, and which proved on 
investigation to contain magnums and Jero- 
boams of vodka and champagne, will see in 
these same buildings, untenanted and falling 
into disrepair, a mere ghostly semblance of 
their former selves, and will feel the chill of 
doom hanging heavily over all. " Babylon," 
indeed, " is fallen, is fallen, that great city," 
and with its fall the vodka and the champagne, 
the cards and the theatres, the women and the 
wine, — the whole prodigious round of eternal 
gaiety which sums up the life of the exuber- 
ant, impulsive pioneer of Kussian civilisation, — 
have been swept away; the strict economy of 
the penurious, calculating Japanese now rules 
where the riotous living of the lavish, pleasure- 
seeking Russian reigned. Such subjects of the 
Tsar as were to be seen at the time of my visit 
— and the nondescript, ramshackle building 
that served for a hotel was full of them — were 
there for the sole purpose of searching among 



the wreckage for remnants of lost property, — 
an unattractive-looking crew, proclaiming loudly 
by their appearance and their presence the 
unlooked-for verity of the impressive and pro- 
phetic declaration of the First Minister of 
England to a London audience in 1898 I 
think that Eussia has made a great mistake 
in taking Port Arthur ; I do not think that it 
will be of any use to her whatever." 

But more than all else Port Arthur tells of 
war ; of the horror of human passions excited 
and let loose ; of the terrible suddenness of the 
coming of modern strife. No martinella rings 
a sonorous warning ; the ethics of the Floren- 
tines are past and gone ; the first move comes 
swift and silent on the chess-board of modern 
war. All round the hills are excoriated and 
shot away. Whole acres of country are pock- 
marked with shot and shell. Shattered guns 
and twisted iron, torn casemates and confused 
and jumbled masses of stone and concrete, mark 
the scene of one of the bloodiest ventures of 
any century. When you stand on the summit 
of the hills that were stormed, when you realise 
the science and skill with which the fortifica- 

294 japan's place in the far east. 

tions were planned and made, and when, 
further, you observe the approaches from tha 
plains below, — long, narrow saps, hewn with 
infinite patience in the frozen ground, pushed 
slowly, at the rate sometimes of only a few 
inches a -day, but steadily and determinedly, 
towards the belching strongholds above, — you 
may well ask wonderingly what manner of men 
were they who stormed and won the bristling 
heights of Nanshan and Wolfs Hill, Kikwan 
and Erhlungshan ? In one corner of the North 
Kikwan fort a mass of charred and crumpled 
debris marks the spot where Kondratchenko 
fell ; in another, the grimy and smoke-black- 
ened casemates tell of hideous fighting with 
bayonet and hand-grenade. For days the in- 
domitable men of Nogi's army sapped slowly 
and unceasingly towards the grim outlines of 
the fort that loomed above, and then suddenly 
a familiar sound fell upon their ears — the sound 
of pick and crowbar driven forcibly into frozen 
ground. For two days they listened to the 
well-known thud, becoming more and more 
distinct as they worked desperately towards 
their goal, and on the third they learnt the 

"fihst-class impregnable fortresses." 295 

cause in the roar and destruction of an ex- 
ploded mine. None lived to tell the tale, but 
their places were silently and mechanically 
filled, and at length the outworks were reached 
and a breach was made. Two men only en- 
tered alive, and for two days, without food and 
without sleep, they stood at bay in an angle of 
the concrete outer way ; and when relief came 
it was not the relief of death, but of their 
comrades, as they at length wore out and piece 
by piece beat down the stubborn defence. 

But the war is over, and it is into other 
channels that the national energy is being 
turned. Japan will not repeat the Russian 
folly of sinking millions in " first-class impreg- 
nable fortresses" which come tumbling down 
in the day of trial. She has fought for Man- 
churia and won, and who shall blame her if she 
has set her hand to gather in the spoil ? Some 
day the railways and coal-mines, which are 
hers by right of conquest, will be useful and 
valuable properties ; for the present there was 
much to do, as a journey to Mukden readily 

At 11.45 one September morning I steamed 

296 japan's place in the far east. 

out of historic, war-worn Port Arthur and 
plunged into the labyrinth of hills beyond. 
For two hours all went well, and then, at the 
little wayside station of Nan-kwan Ling, a 
place of a dozen modest buildings, including a 
signal-box, and garrisoned by twenty weary 
Japanese soldiers, it was patiently but firmly 
explained to me by a phlegmatic railway official 
that I must change, and that I had to look 
forward to a five hours' wait. Whether by 
accident or by design, the authorities at Port 
Arthur had started me on the wrong train. 

Precisely five hours later the Tairen -Mukden 
express steamed in, and into the single second- 
class carriage — the rest were coolie carriages 
and trucks — we scrambled, a motley collection 
of Japanese officers in khaki uniforms, Chinese 
gentlemen in satins and silks, missionaries in 
sober broadcloth, mere tourists in unclassified 
garb, and — a gentleman of the press, sufi'ering 
demonstratively from an acute attack of Japano- 
phobia. The complaint is one which is easily 
diagnosed, and is usually found in its most 
highly developed state in those correspondents 
who failed to see, during the war, as much as 


they had anticipated of the operations at the 

The view, broken at first by rugged moun- 
tains stretching across the neck of the Kwan- 
tung peninsula, resolves itself ere long into 
a golden monochrome, produced by limitless 
miles of giant millet awaiting the sickle, which 
tell of the stupendous fertility of the central 
Manchurian plains. But the monotony of the 
scene soon palls, and the twenty long hours to 
Mukden induced sighs of regret for the mag- 
nificent cars which used to roll luxuriously and 
majestically over a 5 -foot gauge in the days 
of the Russian occupation. The gauge was 
now 3 feet 6 inches ; small, hard -seated, 
second-class cars the best that were provided ; 
and neither food nor sleeping accommodation 
was supplied. Owing to the numbers travel- 
ling it was only possible to rest by turns, and 
our staple articles of diet were Chinese biscuits 
and Japanese Tansan water. Later on I 
travelled over the newly built Hsin-min-tun- 
Mukden railway ; but here even the accommo- 
dation of the main line failed, and I was jolted 
along in company with a crowd of Chinese 

298 japan's place in the far east. 

coolies and Manchu women in a cattle-truck. 
With these experiences fresh in the memory 
there was small enough encouragement, even 
could I have afforded the time, to travel over 
the 180 odd miles of the decauville railway 
which wound perilously over the mountainous 
country between Mukden and Antung. 

From the above description it will have been 
gathered that for the first year after the close 
of the war — and indeed for some considerable 
time longer — the railway system in Manchuria 
was in an abnormal condition ; that all lines 
were single ; that the gauge was the narrow 
3 feet 6 inches of Japan, except in the case of 
the Antung-Mukden line, which was less ; and 
that rolling-stock of every description was woe- 
fully deficient. Vast schemes, however, were 
already on foot for the reorganisation of the 
J apanese Manchurian railway system ; but 
before outlining the proposals put forward and 
the progress of their subsequent execution, let 
me invite the reader to accompany me in my 
inspection of the Manchurian capital. 

Mukden is a picturesque town, after the 
Chinese fashion, enclosed by an outer mud 

Manchuria's capital. 


wall some thirteen miles in circumference. 
Inside this area a more substantial and more 
imposing crenelated wall of brick, with eight 
towering gateways, encircles the city proper. 
A Japanese census of recent date put the popu- 
lation at 197,000 — an estimate undoubtedly 
below the real figure, which was placed by 
a resident of over thirty years' standing at 
nearer 400,000. Broad streets lined with 
shops flaunting the gorgeous signboards and 
streamers dear to the Celestial mind run 
from north to south and east to west, at 
whose point of intersection the inevitable 
bell and drum towers rise to prodigious 
heights, and frown like guardian genii over 
the lesser buildings of the city. In the 
heart of the inner enclosure stand the old 
Imperial palace with its famous throne-room 
built in 1631 in the reign of the Emperor 
T'ai Tsung, the circular yellow-tiled hall of 
audience, the Viceroy's yamen, and the storied 
treasure-house of the Manchu dynasty. By 
the courtesy of the Tartar general, Chao Erh 
Sen, a man of progressive views who had 
been resident in Mukden a twelvemonth, I 

300 japan's place in the far east. 

was privileged to gaze upon the hoarded 
wealth of the Manchu emperors. Once in 
every ten years an Imperial caravan travels 
from Peking to Mukden, bearing with im- 
pressive state treasure recalling the " wealth 
of Ormuz and of Ind." Here, behind rickety 
doors, are massed magnificent works of art 
from the great days of Ch'ien Lung, — gorgeous 
robes of Imperial yellow heavy with em- 
broidery of seed pearls — just such robes, 
indeed, as those concerning which Ser Marco 
Polo averred that " there are some of these 
suits decked with so many pearls and 
precious stones, that a single suit shall be 
worth full 10,000 golden bezants"; cases of 
wonderful lacquer work ; huge jewel-studded 
crowns; daggers with immense handles of 
clustered diamonds ; vast strings of pearls and 
other precious stones, emeralds, rubies, sapphires, 
and cats'-eyes, — all huddled side by side with 
priceless porcelain, the pride of the days of the 
Mings, and austere bronzes fashioned cunningly 
by the artificers of the Chao dynasty four thou- 
sand years ago. With ostentatious care these 



treasures were lifted from their musty shelves 
and cupboards and held one by one before 
my admiring eyes. Perhaps only in the 
treasury of Moscow, or within the walls of 
the palace at Teheran, might one look at 
the present day upon a similar display of 
heterogeneous and barbaric splendour. 

But while these things still stood as heir- 
looms of an era wellnigh gone, radical changes 
were to be seen in progress close at hand. 
Japanese contractors were about to macadamise 
the streets of Mukden at a cost — to China — 
of 1,000,000 taels. Flaring posters in every 
available spot proclaimed the existence of a 
fierce competition between the Anglo-American 
Tobacco Trust and the tobacco monopoly of 
Japan for the favour of the Manchurian 
market ; and while the Governments of 
England, America, and Japan were expend- 
ing immense stores of patience in represent- 
ing to an unwilling China that by the open 
door they understood the right of foreign 
trade and residence in Mukden itself, and not 
merely in an isolated settlement outside, hun- 

302 japan's place in the far east. 

dreds of Japanese traders had installed them- 
selves within the city walls and defied all 
efforts to turn them out. 

And it was here that I began to find solid 
foundations for a growing feeling of irritation 
against Japan. In Manchuria, as in Korea, 
the military element was undoubtedly guilty 
of aggressive and arbitrary behaviour. Land 
was appropriated without adequate payment ; 
buildings were taken and the rents left unpaid ; 
the reasonable representations of the Chinese 
authorities were scouted and ignored. A 
swarm of Japanese ne'er-do-weels had lit like 
a flight of locusts upon the land, and a host 
of shameless courtesans plied their trade in 
the open market in the broad light of day. 
Dishonesty in trade ; the arbitrary appropri- 
ation of property without adequate payment ; 
the shameless flaunting of vice in the streets, 
— all these things are (theoretically, at any rate) 
cardinal sins in the eyes of the Chinese ; and 
the Japanese, by their conduct in Manchuria, 
gave them every excuse for regarding them 
with disgust, and for contemptuously apply- 
ing to them the scornful phraseology of one 


of the expressive sayings of the country — 
Men living the life of birds and beasts." 
Allowance must, no doubt, be made for some 
measure of licence at the conclusion of a great 
war; and with the gradual withdrawal of the 
military occupation and the institution in 
its place of a responsible civil administration, 
much that was evil has by now, doubtless, 
been set right. But the most casual observer 
could not fail to perceive that immense harm 
had already been done, and that nothing short 
of a complete and drastic change of con- 
duct could possibly justify the pretentious 
claim which was not infrequently advanced, 
that the success of Japanese arms in Manchuria 
denoted the triumph of the civilisation of 
the East over the bullying barbarism of the 

But apart from mere questions of propriety 
and decorum, other charges have been pre- 
ferred against Japan, which may be summed 
up under two heads — firstly, charges against 
the Government of bad faith ; and, secondly, 
charges of a low morality against Japanese 
traders as a class. With the second of these 

304 japan's place in the far east. 

charges I have already dealt ; ^ let us consider 
the charge against the Government of bad 

The question of the entry of goods duty 
free through Tairen, and of the obstruction 
of the junk traffic on the Liao river by the 
railway bridge at Hsin-min-tun, have been 
so copiously discussed in print that I may be 
excused from recapitulating all the details 
here. Suffice it to say that the temporary 
bridge which undoubtedly offered serious 
obstruction to river transport in the spring 
and early summer of 1906, and which was 
the subject of a protest by the Japanese 
consul at Niu-chwang himself, was speedily 
removed, and that I myself saw junks in full 
sail on either side of the new and more lofty 
structure ; while it is now a matter of history 
that if the Japanese did enjoy some advantage 
for a time, thanks to the greater facilities which 
they enjoyed for handling goods at the duty- 
free port of Tairen, this advantage came to 
an end with the establishment of an office 
and staff of the Chinese Imperial Maritime 

^ See chapter xxvii. 



Customs Service at the port on July 1st, 1907. 
Indeed it is a matter for comment that for 
months after the Customs service had been 
established in southern Manchuria, occupied by 
victorious Japan, goods still poured duty free 
across the northern frontier in the occupation 
of vanquished Eussia ; and it is still asserted 
that, though Customs stations were nominally 
established at the avenues of ingress from 
the north early in February 1908, duties are 
left uncollected and goods allowed to pass 
in duty free, to the great disadvantage of the 
importers in the south. 

But beyond all this there has for long 
existed a tangible feeling of uneasiness, among 
Chinese and Europeans alike, that preferential 
treatment has been and is being accorded to 
Japanese as opposed to foreign goods. A belief 
which, if unsupported by definite proof, at least 
claims consideration from the persistence and 
universality with which it is held, is prevalent 
throughout the Far East that Japanese goods 
for Manchuria receive largely advantageous 
treatment at the hands both of the Japanese 
shipping lines and of the Manchurian railway 

VOL. II. u 

306 japan's place in the far east. 

administration. And in disconcerting confirm- 
ation of the above belief there appeared during 
the summer of 1906 a remarkable article in a 
Japanese paper, the *Asahi,' in the course of 
which the following highly interesting and 
important statements were made : — 

1. That a guild had been formed by the 

five chief cotton textile companies in 
the Kansai district for the exportation 
of cotton goods for Manchuria. 

2. That the Mitsui Company would be con- 

stituted sole agent by the above guild 
for the sale of their goods. 

3. That the Mitsui Company had decided to 

do everything in their power to push 
the sale of the goods, and to render 
their services for the time being free 
of charge. 

4. That the guild would maintain the export 

even though, in order to do so, they 
incurred some loss. 

5. That in reply to representations made by 

the above guild the Japanese Govern- 
ment had decided to make a loan on 
cotton textiles, and other goods to be 



exported to Manchuria, at the rate of 
4J per cent per annum, J per cent of 
this interest to be refunded to any con- 
cern effecting an export of more than 
5,000,000 yen a-year. 

6. That the Government would carry out 

negotiations with the War Office with 
a view to securing free carriage, or if 
not free, carriage at half rates by the 
Manchurian Kailway for a period of 
one year, and with the Nippon Yusen 
Kwaisha and the Osaka Shoshen 
Kwaisha for similar privileges by their 

7. That the loan referred to would be made 

through the Yokohama Specie Bank as 
regards Manchuria, and that a similar 
policy would be pursued through the 
agency of the Dai-ichi Guiko (First 
Bank) in Korea. 
These statements are of such importance that 
it is interesting to see what evidence in support 
of them is to be found in Manchuria itself. 
As to the formation of the guild there is no 
doubt, and it has been publicly stated by Mr 

308 japan's place in the far east. 

Yamanobe, the president of the Osaka Cotton 
Spinning Co., that they exported 1000 bales 
of goods in May (1906), and that this amount 
would be increased by 500 bales a-month until 
the monthly total of 3000 bales would be 
reached by September; and I may add that 
the bulk of the Japanese shirtings which I 
saw in the country bore the stamp " C.C. 
(cotton cloth) Export Ass." — obviously the 
mark of the guild. In support of statement 
(2), I found an agent of the Mitsui Co. recently 
arrived in Mukden, and engaged in erecting 
spacious offices in the centre of the inner city, 
while Chinese middlemen were already retail- 
ing his goods ; and in confirmation of statement 
(4), I learned that Chinese middlemen were 
purchasing Japanese cottons at $3.30, $3.40, 
and $3.50 the piece — a figure pronounced by 
experts to be undoubtedly below cost price. 

So far the result of investigation points to 
the correctness of the statements of the * Asahi,' 
but, equally, it must be admitted that these are 
statements of matters to which no legitimate 
objections can be raised. And it is precisely 

America's "open door" circular. 309 

upon the one point — the granting of preferen- 
tial railway rates — upon which diplomatic repre- 
sentations might be made, that definite proof 
is not forthcoming. There is no earthly reason 
why the cotton companies of Osaka should not 
form themselves into a guild or sell their 
goods at a loss if they feel so inclined, nor, 
if the Mitsui Company have a fancy for resolv- 
ing themselves pro tern, into a philanthropic 
institution, is there any just cause that I am 
aware of to prevent them doing so. But there 
is every reason why preferential rates should 
not be accorded to Japanese goods passing 
over the railways of Manchuria, for Japan has 
long ago declared herself a subscriber to the 
policy of the open door, and has on these 
grounds received the sympathy and support 
of other Powers. In reply to America's 
circular in 1899 on the subject of the open 
door, Japan agreed not to levy " any higher 
railroad charges over lines built, controlled, or 
operated within her sphere on merchandise 
belonging to citizens or subjects of other 
nationalities transported through such spheres, 

310 japan's place in the far east. 

than shall be levied on similar merchandise 
belonging to her own nationals transported 
over equal distances " ; ^ and in view of the 
damaging belief that the promise given upon 
that occasion is being broken at the present 
time, and of the bitter feeling which is un- 
doubtedly growing from day to day against 
the Japanese, it cannot be too strongly urged 
that the utmost endeavour should be made to 
disprove the charges which are so persistently 

Apart from all question of principle, it may 
be said that the traveller in Manchuria will 
not meet with such evidence as will support 
the contention that the influx of Japanese 
manufactures has been responsible for the fall 
in the demand for foreign goods, which has 
been noticeable since the war. That Japanese 
manufacturers look for a large market in that 
country is true, and that the low price of 
their goods has already secured for them a 
considerable sale the retailers of Mukden are 
ready to admit, and British and American 

1 China, No. 2 (1900). 


makers have undoubtedly to recognise for the 
future the presence — the perfectly natural and 
legitimate presence — of a keen competitor in 
the coarser and cheaper class of goods. The 
view which I found prevalent in Manchuria 
itself, with regard to the depression in trade, 
was that the large sums of money undoubtedly 
left in the country by the lavish spendthrift 
Eussian army were still in the hands of the 
farmers and peasants, and that, though they 
had not yet, they eventually would find their 
way to the merchant classes. It must also be 
borne in mind that Manchuria is, above all, 
an agricultural country, dependent for its 
prosperity upon the culture of the soil, and 
it would be absurd to suppose that its people 
have not felt the severe strain of close upon 
two years' war. It was one of the shrewdest 
of the men engaged in the cotton industry of 
Japan, who told me that he looked for a 
decrease rather than an increase in his export 
trade as the immediate result of the war. 
Three years, it is true, have elapsed since the 
cessation of hostilities, but the turmoil of 

312 japan's place in the far east. 

war leaves its aftermath, and in any case 
in a country in which laissez-faire is made 
a religion, and co-operation for the outlay of 
common funds is unknown, recuperation is a 
slow process." ^ 

That Japanese piece-goods have made head- 
way, on the whole, in the Manchurian market 
is confidently asserted by the * Osaka Asahi 
Shimbun,' which states (October 1907) that the 
" C.C. Export Association," with the assistance 
of the Government, has been able to destroy in 
the course of eighteen months the monopoly 
hitherto enjoyed by American fabrics, and that 
American imports into Manchuria in this par- 
ticular line dropped during this period to 6000 
bales, while Japanese imports rose to 29,000 
bales. Whether, and if so, how, this change 
has been brought about by means of unequal 
opportunity remains a mystery. The whole 
matter has been made " the subject of serious 
study by European and American merchants, 
but they have been unable to peer through 

^ "The Trade of Manchuria," Financial and Comiuercial 
Supplement of 'The Times,' December 27th, 1907. 

"not proven." 


the veil of mystery and to put a finger on 
the spot";^ and if judgment is to be passed 
upon Japan on a count of violation of the 
policy of the " open door," that judgment 
must surely be, in light of present know- 
ledge, the non-committal one of "Not proven." 

1 Ibid. 




In the preceding chapter mention has been 
made of the vast schemes which began to 
take shape at the conclusion of the war, for 
the exploitation of Manchuria by means of a 
reorganised railway system. The outcome of 
these schemes is the " South Manchurian 
Eailway Company/' and since the railway, 
of which the company is the nominal owner, 
is the chief material asset which has accrued 
to Japan as a result of the war, and is a 
most important factor in the struggle for the 
Manchurian market, besides constituting the 
security for £6,000,000 of British capital, some 
little space must be devoted to a record of its 


By an Imperial ordinance promulgated on 
June Sth, 1906, a company entitled the 
Minami Manshu Tetsudo Kahushiki Kwaisha 
(South Manchurian Eailway Joint-Stock Com- 
pany) was formed, the shareholders in which 
were limited to the Governments and subjects 
of Japan and China. It may at once be said 
that neither the Government nor the subjects 
of China availed themselves of the invitation, 
thus indirectly given them, to take up shares, 
so that the whole of the shares are held in 
Japan. On August 10th the first meeting 
was held of a committee, entitled the Man- 
churian Eailway Commission, under the presi- 
dency of General Terauchi, to consider and 
discuss the proposals of the Government with 
regard to the question. The outcome of these 
discussions may be briefly summarised as 
follows : — 

The authorised capital of the company to 
be 200,000,000 yen (£20,000,000, approxi- 
mately), 100,000,000 yen of which was con- 
sidered as having been already subscribed by 
the Japanese Government under the following 
headings : — 

316 japan's place in the far east. 

523 miles of railway, exclusive 

of rolling stock, at 100,000 

yen a-mile .... 52,300,000 yen 
The coal-mines at Fusliun and 

Yentai 30,000,000 yen 

Other properties attached to 

the railways . . . 17,700,000 yen 

Total . . 100,000,000 yen 

The lines included in the above assessment 
were : — 

(1) The Tairen-Changchun line. 

(2) The Nan - kwan Ling - Port Arthur branch 


(3) The Tafangshin-Liushutun branch line. 

(4) The Tasichiao-Niuchwang branch line. 

(5) The branch line to the Yentai coal-mines. 

(6) The branch line to the Fushun coal-mines. 

All these lines to be converted to a 4 feet 
8 J inches gauge within three years, and the 
line from Tairen to Mukden to be doubled. 
China to have the option of purchasing the 
railways thirty -six years after the Japanese 
had begun to operate them, and in the event 
of her failing to do so, the Japanese tenure 
to extend to eighty years. The line between 


Mukden and Antung, on the Korean frontier, 
was considered to be on a somewhat different 
footing. It was decided that it should be 
completed on a 4 feet 8J inches gauge in three 
years, but that it should not be included in 
the properties making up the Japanese Govern- 
ment's share of the capital, the arrangement 
come to providing that the company should 
take it over at a reasonable rate. China, in 
this case, to have the option of purchase at 
the expiration of fifteen years. 

In addition to railway business, it was 
decided that the company should engage in 
mining, water transport, electric enterprises, 
warehousing, and the development of the 
land appertaining to the railway, a capital 
sum of 10,000,000 yen being assigned for 
running steamers in connection with the rail- 
way and 8,000,000 yen for the purpose of 
constructing warehouses. A proposal by the 
Government to set aside 2,000,000 yen for 
the commission sale of goods carried by the 
railway was vetoed by the Commission, as 
being calculated to stifle private enterprise. 
In return for the right of Government super- 

318 japan's place in the far east. 

vision and first call upon the service of the 
railway in case of need, a guarantee of 6 per 
cent for fifteen years on the capital invested 
by private individuals was promised. 

It was officially estimated that the coal- 
mines would yield 1500 tons daily for the 
first year, which total was expected to amount 
to 3000 tons by the fourth year, and that 
the net profits would amount to 5*9 per cent 
on the accumulated capital invested during the 
first year, 7*1 per cent on the accumulated 
capital invested by the fifth year, and 8*7 
per cent on the accumulated capital invested 
by the tenth year. These calculations, how- 
ever, appear to ignore the capital represented 
by the property subscribed by the Japanese 
Government, — i.e., the existing railways, &;c., 
valued at 100,000,000 yen, — so that the returns 
on the actual value of the whole concern 
would, presumably, be considerably less than 
is suggested by the above figures. 

So much for the proposals ; now as to their 
execution. On March 31st, 1907, the disso- 
lution of the Military Railway Bureau was 
marked by a public ceremony, and on April 


1st the South Manchurian Kail way Company, 
under the presidency of Baron Goto, came 
into possession of their own. By a happy 
coincidence a long-pending agreement between 
China and Japan, respecting various outstand- 
ing railway questions in Manchuria, received 
the signatures of the representatives of the 
two countries about the same time. By this 
agreement the long - foreshadowed purchase 
of the Hsin - min - tun - Mukden railway by 
China was arranged for, the price agreed upon 
being 1,660,000 yen. It was further agreed 
that the Chinese Government in reconstruct- 
ing the railway should borrow half the funds 
required for the work east of the Liao river 
from the South Manchurian Eailway Company, 
and that the same arrangement should be 
adopted with regard to the construction of 
the Changchun - Kirin railway, the property 
and receipts of the railways being offered in 
each case as security for the loans.^ In the 
case of each railway a Japanese chief engineer 

1 In the case of the Hsin-min-tun railway, the property and 
receipts of that part of it which lies east of the Liao river. 
For the full text of the agreement, see end of chapter. 

320 japan's place in the far east. 

and chief accountant to be engaged, and the 
receipts of the two railways to be deposited 
with Japanese banks. 

With these outstanding questions satisfac- 
torily disposed of, the company was free to pro- 
ceed with the development of its own property. 
Of the million 200 yen shares into which the 
capital of the company was divided, half 
already stood to the credit of the Japanese 
Government, and of the remaining half, 
one-fifth — i.e., 100,000 shares, representing 
20,000,000 yen — had been issued and sub- 
scribed in Tokyo, and 10 per cent on them 
(2,000,000 yen) called and paid up. The 
amount still to be subscribed, therefore, 
amounted to 80,000,000 yen, and for this 
purpose it was decided to raise foreign loans 
guaranteed by the Japanese Government. 
Accordingly, in July 1907, a loan for 
40,000,000 yen (£4,000,000) was contracted 
with British houses, and 5 per cent sterling 
bonds floated on the London market. 

In the meanwhile, in June a convention 
had been signed between Japan and Russia 
arranging for the connection of the railway 


systems of the two Powers, and in November 
(1907) through traffic was at last brought into 

In the spring of 1908 it was proposed that 
a loan for the remaining 40,000,000 yen should 
be raised ; but conditions proving unsatis- 
factory, the promoters contented themselves 
with half this amount, and a loan for 
£2,000,000 was again raised in London. By 
the end of May the whole of the main line 
had been converted from the narrow gauge 
to the standard 4 feet 8 J inches gauge, and a 
convenient through service established. 

It was natural enough that the railway 
company should do what they could to attract 
all the traffic possible to their line, and more 
especially to divert the flow of trade, as far as 
possible, from the treaty port of Niu-chwang 
to the port of Tairen in their own leased 
territory. And so we find that in 1906 the 
rates of freight on the railway from Niu- 
chwang to Kwanchengtze, one of the chief 
distributing centres in Manchuria, a distance 
of 330 miles, were 5s. a-ton more than from 
Tairen to the same place, a distance of 465 


322 japan's place in the far east. 

miles. Equally, naturally, those interested in 
the trade of Niu-chwang, and Europeans in 
North China generally, expressed their strong 
objection to this differential treatment, and in 
answer to requests made to him during a visit 
to Peking, Baron Goto promised to see that 
the matter was adjusted. There was, however, 
another factor bearing an important influence 
upon the whole matter of railway freights 
which seems at the outset to have been 
somewhat overlooked — namely, the newly 
reconstructed Chinese railway from Mukden 
to Hsin-min-tun, and so on to Niu-chwang 
and Shan-hai-kuan. No sooner had this line 
been got into working order than freights on 
the Chinese system were found to be very 
much lower than on the Japanese system, and 
throughout the year 1907 a freight war was 
waged fiercely between the two contending 
systems, necessitating large reductions in the 
rates at first charged on the South Manchurian 

For a considerable time, too, after the rail- 
way was taken over by the company it suffered 
in reputation, owing to the disorganisation 
inevitable on converting a military into a civil 


line. The rudeness and high-handed behaviour 
generally of the railway guards was loudly de- 
cried by Europeans travelling by the line, and 
the capacity of the railway itself, as well as 
its administration, was compared most unfav- 
ourably with the connecting Eussian system. 
Happily, Baron Goto has been able to bring 
about a great change for the better in every 
respect, and that the line now gives satisfaction 
to the general public may be gathered from the 
following message received by Dr Morrison at 
Peking, and published in ' The Times ' of June 
17th of the present year : — 

" With powerful new Baldwin engines the trains 
run with the regularity of clock-work ; the carriages 
are most comfortable, as luxurious as any Pullman 
car; the railway employes are all courteous; the 
soldiers are quiet and unobtrusive. No one could 
wish for more comfortable travelling than is now 
possible on the Japanese South Manchurian rail- 

Until this change in the character of the rail- 
way had been brought about. Baron Goto had — 
perhaps wisely — insisted that junction with the 
Eussian system should be deferred. With the 
approaching completion of the conversion of 

324 japan's place in the far east. 

the line from the narrow to the broad gauge 
early in the summer of the present year (1908), 
the president of the company travelled to St 
Petersburg to discuss the details of the scheme 
for linking up the two lines, and to endeavour 
to convert unfriendly rivalry on the part of 
the Russian railway authorities into friendly 
co-operation. The competition of the Russian 
line to Vladivostock, as of the Chinese line vid 
Hsin-min-tun, had made itself felt ; but Baron 
Goto returned from his mission in June entirely 
satisfied with the results he had achieved. 

It may be assumed, then, that the com- 
pany have successfully carried their enterprise 
through its initial stages, and that henceforth 
the South Manchurian railway system may be 
looked upon as a going and a paying concern. 
The accounts presented at the general meeting 
of the company on December 14th, 1907, 
showed gross earnings of 5,002,000 yen, which 
allowed of a sum of 925,907 yen being carried 
forward after the deduction of all the sums 
required for the payment of the 6 per cent 
dividends to the private shareholders, rewards 
to officials, and allocations to the legal and 
special reserves. An even more gratifying re- 

THE company's ACCOUNTS. 325 

suit was shown by the figures presented at the 
half-yearly general meeting held in Tokyo on 
June 27th (1908).^ The accounts presented 
and passed on this occasion were as follows : — 








Mines .... 



Harbour .... 



Lands .... 



Hotels .... 



Electric lighting 



Various .... 



Interest on loans 


Difference between issue 

price and actual re- 

ceipts from loans 





^ The accounts of the railway for the first whole year during 
which it was in possession of the company — i.e., from April 1st, 
1907, to March 31st, 1908— were published by the 'Nichi Nichi 
Shimbun.' According to this paper the railway carried during 
this period 1,337,791 tons of goods and 1,522,231 passengers. 
The gross receipts from both sources amounted to 9,778,911 
being at the rate of 49,823 i/en per mile daily on the 
main line and 4994 yen on the Mukden-Antung line. The 
operating expenses during the first half of the year amounted 
to 70 per cent of the gross earnings, but in the second half 
they fell to 50 per cent, and the net profits amounted to 
3,911,517 yen. 

326 japan's place in the far east. 


Net profit .... 1,087,981 
Brought over from previous account 925,907 

Total available . . 2,013,888 

The above was distributed as follows : — 


Keserves .... 


Dividend (6 per cent) exclusive 

of State's shares . 


Special reserve 


Kewards to officers . 


Carried forward 


The most cursory examination of this state- 
ment will suffice to show how great are the 
prospects of the enterprise. In the first place, 
the earnings during the period under review 
are enormously in excess of the most optimistic 
estimate hitherto formed. Interest on loans 
and the dividends guaranteed to the private 
shareholders have been paid without recourse 
being had to the State, ^ and a sum approaching 
2,000,000 yen has been paid to the reserves, 

1 It will be observed that the earnings would have sufficed 
to pay a small dividend on the State shares, but it had been 
decided that these shares should not receive dividends until 
a longer period of working had elapsed. 



distributed as rewards to the officials, or carried 
forward to the next account. This satisfactory- 
result is all the more remarkable when it is 
observed that two items only out of the seven 
from which returns might have been derived — 
namely, railways and mines — show a balance 
on the right side. The natural presumption 
is that when the capital invested in harbours, 
lands, hotels, &c., begins to show returns, as it 
surely will, the profits of the enterprise will 
exceed the most sanguine expectations. Steady 
progress has already been made with the coal- 
mines, the output having been increased from 
400 tons a-day — the figure at which it stood 
when the company came into possession — to 
1000 tons a-day, and the cost of production 
having been reduced from about 8s. 6d. to 5s. 
a -ton. Nevertheless, it is beyond question 
that the present output could be enormously 
increased, though it has been suggested that 
the coalowners in Japan itself have made 
strong representations as to the injurious eff*ects 
which a sudden and abnormally large increase 
in the output in Manchuria would be likely to 
have upon the home industry. 

328 japan's place in the far east. 

The policy of the company was explained by 
Baron Goto in his speech when presenting the 
accounts. The adverse criticism which had 
been levelled at their administration of the line 
had been due, he said, to the great difficulties 
which were inevitably found in the way of 
transforming the administration of the road 
from a military system to a civil. It had de- 
cided them to push on the complete reorganis- 
ation of the personnel and the reconstruction 
of the line itself with all speed, and for this 
reason it had been found necessary to go to 
America for plant and rolling-stock, since in no 
other country had it been found possible to 
obtain sufficiently speedy delivery.-^ He em- 
phasised the desire of Japan to encourage the 
trade and enterprise of all nations in Man- 
churia, since by this means would the wealth 
and resources of the country be most speedily 
developed. And in confirmation of this he 
called attention to the Investigation Bureau 
instituted by direction of the Governor-General 

^ This for the benefit of the English public, since a certain 
amount of annoyance had been shown at the purchase of 
American goods with English money. 



at Tairen, at which information concerning 
the country would be given to any one, of 
whatever nationality, who took the trouble to 

I have dwelt at some little length upon the 
rosy prospects of the South Manchurian railway, 
and upon the avowed policy of those who are 
responsible for its direction, because they have 
a direct bearing upon the attitude of the 
Japanese Government towards a railway ques- 
tion of international interest and importance, 
which has been the subject of acute contro- 
versy in Great Britain, China, and Japan 
during the past year. 

During the summer of 1907 it became known 
that China was contemplating an extension of 
her railway from Hsin-min-tun fifty miles 
north to Fa-ku-men, a place situated in a 
fertile district west of the Liao river — whence, 
no doubt, it might at some future date be 
carried to the Russian trans-continental rail- 
way at Titsihar. Japanese interest was at once 
aroused. With commendable foresight she had, 
in December 1905, concluded certain agree- 
ments with China which had not seen the light 

330 japan's place in the far east. 

of day alongside with the published treaty of 
that month. Among these was an undertaking 
by China, " with the view of protecting the 
interests of the South Manchurian railway, not 
to construct a parallel line or a branch line 
near the said railway hejore its reversion to 
ChinaJ' — an agreement as to the validity of 
which the British Government admits there 
can be no doubt.i 

1 In reply to a question by Mr Lyttelton on March 24th, 1908, 
Sir Edward Grey gave the information which the British 
Government possessed with regard to the agreement in ques- 
tion. Appended are the question and answer : — 

Q. Mr Lyttelton. — To ask the Secretary of State for Foreign 
Affairs, if the attention of his Majesty's Government has been 
directed to the protest raised by the General Chamber of 
Commerce of Niu-chwang against the attitude of Japan in 
forbidding the construction by China of the Hsinmintun- 
Fakumen railway ; is his Majesty's Government in possession 
of a copy of the alleged agreement by which Japan claims the 
right of vetoing the construction of that railway ; was it re- 
ceived simultaneously with the receipt of the Chinese -Japanese 
treaty of 1905, and, if not, when was it received by his Ma- 
jesty's Government, and does it bear the signature of the 
plenipotentiaries of the Chinese- Japanese treaty of 1905 ; and, 
if the alleged agreement does not bear these signatures, has it 
any validity ? 

A. Secretary Sir Edward Grey. — The reply to the first part 
is in the affirmative. His Majesty's Government are in pos- 
session of the text of the clause of the protocol by which Japan 

japan's protest. 


Here, then, was the very possibility which 
the Japanese had foreseen, and against which 
they had guarded, assuming a definite shape, 
and on August 10th (1907) a strong protest 
was entered by Japan, and repeated on October 
the 12th and November the 6th. China, how- 
ever, maintained that the distance separating 
the two lines — said to be thirty-five miles at the 
nearest point — was too great to enable Japan 
to claim that the proposed line came within 
the scope of the undertaking of December 
1905, and on November the 8th she signed 
an agreement with the British and Chinese 
Corporation for financing and constructing 

claims the right of vetoing the construction of the Hsinmin- 
tun-Fakumen railway. It runs as follows : — 

" The Chinese Government engage, for the purpose of pro- 
tecting the interest of the South Manchurian railway, 
not to construct, prior to the recovery by them of the 
said railway, any main line in the neighbourhood of, 
and parallel to, that railway, or any branch line which 
might be prejudicial to the interest of the above- 
mentioned railway." 
This was communicated to his Majesty's Government in 
April 1906, shortly after the treaty referred to by the right 
honourable member. We are informed that the protocol 
bears the signatures of the Chinese representatives ; there 
can be no doubt as to its validity. 

332 japan's place in the far east. 

the line. As soon as Japan learned of this 
proceeding she entered a protest against the 
execution of the scheme. 

Thereafter public opinion in England and 
among Englishmen in the Far East arrayed 
itself whole-heartedly on the side of China. 
Chambers of Commerce, led by the Chamber 
at Niu-chwang, passed resolutions strongly con- 
demnatory of the action of Japan, and accus- 
ations against her of violating the sovereignty 
of China and the principle of the open door 
filled the air. The Japanese Government 
retorted by quoting prohibitory agreements 
similar to her own, contracted by other Powers 
equally pledged to the policy of the open 
door, with China in the case of other railways, 
such as the agreement between China and 
the American China Development Company of 
July 13, 1900, in which it was stipulated that — 

"without the express consent in writing of the 
Director -General and the American Company, no 
other rival railway detrimental to the business 
of the same is to be permitted, and no parallel 
roads to the Canton-Hankow line are to be allowed 
to the injury of the latter's interest, within the 



area served by the Canton - Hankow main line or 
branch lines," 

and concluded by asserting that her action 
was based upon the solemn undertaking by 
China with regard to a particular railway, 
and that the question had no bearing whatso- 
ever upon the general principle of the policy 
of the open door. 

The precedents quoted by Japan were at 
once challenged by the representatives of the 
British syndicate. It was contended that 
the American contract for the Hankow-Canton 
railway, and the British contract for the 
line from Canton to Kowloon, were purely 
financial and industrial agreements made be- 
tween the Chinese Government and private 
companies for the construction of Chinese 
Government railways under Chinese control ; 
and that the lines being mortgaged as first 
security for the repayment of the necessary 
loans, the inclusion of the restricted condition 
in regard to parallel lines was obviously 
beneficial to all concerned, since it facilitated 
the raising of capital abroad. Nevertheless, 
as the history of railway construction in 

334 japan's place in the far east. 

China clearly proves, this condition was never 
intended to be (nor could it be) arbitrarily- 
interpreted by the representatives of the 
foreign bondholders to restrict the Chinese 
Government from constructing other railways 
parallel to these lines, the evident and only 
intention of the condition being to reassure 
investors that the Chinese Government would 
not (presumably at the instance of another 
Power) do anything to injure property which 
is mortgaged for security of foreign loans. 
No such argument could, however, be applic- 
able in the case of the South Manchurian 
railway, which was not a Chinese railway, 
for which China had incurred no liabilities, 
and in which she was not even financi- 
ally interested. And so the war of words 
goes on. 

The controversy is an unfortunate one. 
Putting aside all question of expediency, and 
bearing in mind for the moment the hard 
facts of the case only, the attitude of Japan 
is undoubtedly justifiable. "The existence of 
the agreement of December 1905," as Sir 
Edward Grey declared in the House of Com- 


mens, " is not disputed by the Chinese Govern- 
ment. It is open to the contractors to prove, 
if they can do so to the satisfaction of Japan, 
that the proposed railway would not prejudice 
the South Manchurian line, and so would not 
violate the agreement." This they have not 
succeeded in doing. 

As a matter of expediency, however, it 
appears to the impartial onlooker that there 
is much to be said in favour of submitting 
the question to arbitration. Japan has ex- 
cited envy by her success ; she secured the 
sympathy of the Powers because of her de- 
clared attachment to the policy of equal oppor- 
tunity ; she is alienating it by reason of pro- 
ceedings on her part which savour strongly 
of a policy of exclusion. The agreement of 
December 1905 is there ; but it is an agree- 
ment which may easily be interpreted as 
violating the principle of the open door, and 
the fact that it was kept secret at the time 
when the treaty, of which it was to all intents 
and purposes a part, was published to the 
world, will only add to the disfavour with 
which it is now viewed. Moreover, the Chinese 

336 japan's place in the far east. 

assert that the agreement was made under 
what amounted to compulsion, and that, even 
so, it was only accepted by them on an 
assurance by the Japanese Plenipotentiaries 
that " under no circumstances would Japan 
do anything to restrict China in future from 
any steps she might desire to take for 
the extension of means of communications in 

This may or may not be so ; but even if 
it could be proved that it were not so, those 
who view the progress of Japan with other 
than friendly eyes will find many weapons 
ready to their hand. Article V. of the Agree- 
ment between Great Britain and Japan of 
August 12th, 1905, asserts that— " The High 
Contracting Parties agree that neither of them 
will, without consulting the other, enter into 
separate arrangements with another Power to 
the prejudice of the objects described in the 
preamble of this Agreement " ; and among the 
objects described in the preamble are " the 
preservation of the common interests of all 
Powers in China by insuring the independence 
and integi'ity of the Chinese Empire and 

chtnVs suzerainty in question. 337 

the principle of equal opportunities for the 
commerce and industry of all nations in 
China." It may be plausibly argued that 
the Agreement of December 1905 contravenes 
this clause of the Anglo-Japanese Agreement, 
and there is, in any case, little doubt that 
the present action of Japan is regarded by 
many as a violation of Chinese sovereignty. 
" The Fa-ku-men question," writes a resident 
in the Far East, has afforded the last, and 
not the least, of many proofs that China's 
suzerainty is nominal, and Japan's real, in 
South Manchuria ; it is this fact — and not a 
fifty-mile railway contract — which has aroused 
the indignation of Englishmen."^ Japan 
cannot afford to alienate the sympathy of 
Englishmen; surely, then, it would be to her 
advantage to make a graceful concession, to 
waive the letter of the law, and to ofier to 
submit the matter to arbitration. 

The searchlight of public opinion is turned 
with full force upon Japan at the present 

^ From a letter published in the * Japan Weekly Mail ' of 
February 8th, 1908, by an anonymous correspondent, "whose 
views," according to the writer of the 'Mail's' leading 
article, "have much value." 

VOL. II. y 

338 japan's place in the far east. 

time. Criticism of her actions is all the 
sharper owing to the attempt — well intentioned 
no doubt, but mistaken — made not so very- 
long ago, by a school of political thought in 
Great Britain, to apotheosise an essentially 
human people. The unreasoning panegyrics 
of hysterical enthusiasts at home were cal- 
culated to evoke jeremiads on the part of 
those whose lot it is to submit Far Eastern 
developments to the cold test of unimpassioned 
criticism and practical experience. If the 
sentimentalists were foolish enough to imagine 
that Japan was spending millions of money 
and sacrificing thousands of lives in Manchuria, 
— that she was staking her very existence, in 
fact, upon the fall of the dice of war, for 
the sole benefit of others who were unwilling 
to put up the stakes, — they have only them- 
selves to thank if they are meeting with a 
rude disenchantment. Such altruism may 
be preached but is certainly not practised by 
humanity as at present constituted. Two 
hundred millions sterling and 85,000 lives ^ 

1 Three great ceremonies have been held in Japan since 
the war in honour of those who lost their lives for their 

£200,000,000 AND 85,000 LIVES. 339 

must count for something. No other country 
in the world would fail to make every 
endeavour to obtain in return every ad- 
vantage which political or diplomatic exigen- 
cies allowed. Let the good folk who exalted 
Japan realise that their supposed god is 
after all composed very largely of human 
clay, and they will realise that her pro- 
cedure is no more open to criticism than 
would be the procedure of any other Power — 
and a good deal less than would almost 
certainly be that of most other Powers which 
might have chanced to find themselves in 
the place of Japan to-day. 

The South Manchurian railway is, as I have 
been at pains to point out, the sole material 
return which she has to balance the loss 
of £200,000,000 and 85,000 lives; and if I 
advocate the submission of the Fa-ku-men 
railway question to arbitration on the ground 
of expediency, I nevertheless fail to see any- 
country. On the first occasion the number of spirits wor- 
shipped amounted to 29,550, on the second to 30,877, and on 
the third and last to 24,021. Thus the total number of 
lives lost amounted to 84,448 — a number approximately- 
equal to three army corps. 

340 japan's place in the far east. 

thing reprehensible^ in her endeavouring to 
safeguard, by diplomacy, the single material 
return which she has to show for the misery 
and carnage of eighteen months' war. 

My task is done. I have described with pen 
and camera my journey across the heart of 
China; I have sketched in outline the history 
of the advance of Great Britain to the western 
confines of that country; I have examined 
critically, and to the best of my ability, the 
present state of Chinese commerce, communica- 
tions, and reform ; I have endeavoured to lay 
before the reader an unbiassed presentation 
of the politico-moral problem arising out of the 
Chinese opium traffic ; and finally, I have made 
bold to attempt some prediction as to the 
future of Japan. However great the short- 
comings — and they are doubtless many — I 
still venture to cherish the belief, that in the 

1 If the British Government had considered the Agreement 
of December 1905 to be a violation of the Anglo- Japanese 
Agreement of August 1905, they should surely have lodged a 
protest when the December Agreement was first communi- 
cated to them in April 1906. 



foregoing pages there may be found something 
both of interest and of use to the people of 
our country, whose fortunes, for better or 
worse, are inextricably interwoven with those 
of the peoples of the East. 


Signed at Peking, April 15, 1907. 

Article I. 

The Chinese Government, in purchasing the railway 
constructed by Japan between Hsin-min-tun and 
Mukden, shall pay 1,660,000 yen, the price mutually 
agreed upon, to the Yokohama Specie Bank at 
Tientsin. The Chinese Government, in reconstructing 
the railway, shall borrow half of the funds required in 
the work east of the Liao from the South Manchurian 
Railway Company. 

Article II. 

The Chinese Government in constructing a railway 
between Kirin and Changchun shall borrow half 
of the necessary funds from the South Manchurian 
Railway Company. 

Article III. 

Terms of the loans mentioned in Articles I. and II. 
shall be fixed according to the terms of the loans of 
the railways in and out of Shanhaikwan, except the 
provisions relating to the date of repayment. Prin- 
cipal terms are as follows : As for the regulations 
relating to the conduct of the general affairs of the 


344 japan's place in the far east. 

railways, the present regulations of the Bureau of 
Eailways in and out of Shanhaikwan shall be followed. 

{a) Term of redemption of the loan shall be 
eighteen years with regard to the loan relating to 
the Hsin-min- tun -Mukden railway east of the 
Liao, and twenty-five years with regard to the loan 
relating to the Kirin-Changchun railway. No re- 
payment shall be made before the above-mentioned 

(b) The property and receipts of the Hsin-min-tun- 
Mukden railway east of the Liao shall be offered as 
security for the South Manchurian Railway Com- 
pany's loan relating to that railway. The property 
and receipts of the Kirin-Changchun railway shall 
be offered as security for future contracts by the 
Kirin Railway Bureau and for the loan from the 
South Manchurian Railway Company. 

During the term of the redemption of the loans, the 
Chinese Government shall maintain in good condition 
the railway east of the Liao, the Kirin-Changchun 
railway, the premises, workshops, rolling-stock, land, 
movables, &c., and endeavour to replenish from time 
to time the rolling-stock required for maintaining 

If, in the case of future extension of the Kirin- 
Changchun railway or the construction of branch 
lines, there occurs a deficit in capital to be paid by 
the Chinese Government, the latter shall ask the 
Company for a loan. But in case the Chinese 


Government constructs other railways on its own 
account, it has no need to consult the Company. 

(c) The Chinese Government guarantees the pay- 
ment of the principal and interest of the loans. 
When payment does not take place at the date 
mentioned, the Chinese Government on receiving 
notification from the Company shall pay the required 
sum. In the event of the Chinese Government fail- 
ing after receiving the above notification to pay the 
principal and interest in arrear, the above railways 
and the whole of their property shall be handed over 
to the Company and placed under its control until the 
said principal and interest shall have been paid. But 
when the sum in arrears is small, a grace of not more 
than three months may be allowed. 

{d) During the term of the loans, a Japanese shall 
be engaged as chief engineer. In the event of a 
sufficient number of Chinese not being forthcom- 
ing for the conduct of railway business, Japanese 
shall be engaged. A change of chief engineer, if 
necessary, shall be effected after consultation with 
the Company. 

Moreover, an experienced Japanese shall be engaged 
as railway accountant. He shall have full responsi- 
bility for the disposition and superintendence of 
matters relating to the railway account business. He 
shall discharge the task of superintendence always 
in consultation with the Director - General of the 

346 japan's place in the far east. 

(e) The above railways, being under the jurisdiction 
of the Chinese Government, shall carry gratis the 
troops and provisions sent by the Chinese Govern- 
ment in time of war or famine. 

(/) Eeceipts of the above railways shall be all 
deposited with Japanese banks. The method of 
paying in the deposits shall be decided upon by 
negotiations to be carried out for the conclusion of 
the loan contract. 

Article IV. 

The Chinese Government, after the purchase of the 
present Hsin-min-tun-Mukden railway, shall con- 
clude, as soon as possible, the loan contract relating 
to the railway east of the Liao. Again, the Chinese 
Government shall cause Chinese and Japanese en- 
gineers to co-operately survey the route of the Kirin- 
Changchun railway, in order to investigate the 
expenses required for its construction. The loan 
contract with the South Manchurian Eailway Com- 
pany shall be concluded within six months after the 
conclusion of the said investigation. 

Article V. 

Both the Hsin-min-tun-Mukden and Kirin-Chang- 
chun railways to be constructed by China shall be 
connected with the South Manchurian railway. All 
regulations relating to this connection shall be decided 
upon in negotiations to be carried out between the 
committees to be appointed respectively by the 


Chinese Kailway Bureau and the South Manchurian 
Eailway Company. 

Article VI. 

The actual receipts of the loans mentioned in 
Articles I, and II. shall be equitably fixed in 
reference to the latest loan contract concluded by 
China with other countries. 

Article VII. 

The Hsin - min - tun - Mukden railway shall be 
handed over within one month after the payment 
of its price to the commissioners to be despatched 
by the Chinese Eailway Bureau. 



Aki, the, ii. 141, 143 

Alcock, Sir Rutherford, K.C.B., 

quoted, i. 240 
Alexander, J. G., quoted, i. 220 
American China Development 

Company, the, ii. 332 
Amundsen, E., ii. 74 
Ancestors, worship of, i. 4, 132 ; 

ii. 130 

Anderson, Dr, quoted, i. 240, 

285, 286 
Anegawa (late Angara), the, ii. 


Anglo-American Tobacco Trust, 

the, ii. 301 
Anglo- Japanese Agreement of 

1905, ii. 233, 246, 336 
Annam, i. 311 ; ii. 57 
An-ning Chou, i. 221 
An-pien, i. 164 
Antung, ii. 298 

Armstrong factory in Japan, ii. 

'Asahi,' the, quoted, ii. 306 
Asaniayama, ii. 155 
Ashio, copper mines of, ii. 192 
Asia, the traveller in, i. 7-16 
Aso (late Bayan), the, ii. 144 
Assam, ii. 51, 58, 60, 62, 64 
Atentzii, ii. 63 

Baber, Colborne, quoted, i. 101, 
113, 118, 242, 243, 252; ii. 

Ball, Dyer, quoted, ii. 19 

Bangkok, i. 311, 316 

Barbezieux, M., i. 188 

Bathang, i. 139 ; ii. 58, 61, 62 

Battambang, i. 316 

Belt, F. W., i. 64 

Berne Conference, Japan's re- 
fusal to attend, i. 15 

Besshi, copper mines of, ii. 192 

Bhamo, i. 274, 291 ; ii. 66 

Bigaudet, Father, quoted, i. 9 

Black river, i. 255, 256 

Blackburn Commercial Mission, 
quoted, i. 47, 72, 75, 82, 87, 
166, 175, 186, 206; ii. 32, 
110, 114 

Bonar, Consul-General, quoted, 
ii. 172 

Boxers, the, ii. 15, 18, 22 
Bradford Dyers' Association, ii. 

Brick tea, i. 58 

British and Chinese Corporation, 

ii. 78, 80 
Broomhall, B., quoted, ii. 18 
Brown, Colonel, Mission of, i. 

282, 286 



Browne, Major E. C, quoted, 
i. 309 

Bruce, Colonel C. D., quoted, 
i. 205 

Buddhism, peaceful influence of, 
i. 8, 9 

Burma, i. 43 — annexation of, 

i. 288, 308 

Bushido, i. 22 ; ii. 128, 129 
Butterfield and Swire, Messrs, 

ii. 209 

Calcutta, i. 274 

Carey, F. W., quoted, i. 299 

Carl, Miss, quoted, ii. 17 

Carlowitz & Co., ii. 210 

Cash, i. 103-107 

Central Asia, contrasted with 

East Asia, i. 7 et seq. 
Cha-lag, ii. 75 

Chang Chih Tung, Viceroy, i. 51 

et seq. 

Chang Hsien-chung, i. 113 

Chang-kou, i. 154 

Changsun, Governor of Ho 

Ch'ing, i. 237 
Chao dynasty, ii. 300 
Chao Erh Sen, ii. 299 
Ch'ao-Chou, i. 233 
Chao-t'ung Fu, i. 169, 184, 


Chaya (tea-house), in Japan, ii. 

Chemulpo, ii. 210 
Ch'engtu, i. 136-152 ; ii. 29 
Chia-ling, river, i. 77 
Chiang- ti, i. 173 
Chia-tien-tzu, i. 134 
Chia-ting Fu, i. 155 
Chickuzen valley, the, ii. 195 
Ch'ien Lung, ii. 300 
Chien Pai, i. 130 
Chifu, ii. 209 — Agreement of 

(1876), i. 93, 173 
Chi-li-pu, i. 168 
Chin T'an rapid, i. 86 

China — 

area of, i. 22 

awakening of, i. 5, 162, 170, 
176; ii. 5, 11-14, 25 

commercial and industrial 
potentialities of, i. 22, 

exclusive policy of, i. 229- 

232 ; ii. 30, 35-38 
foreign trade of, i. 26 ; ii. 90- 


integrity of, guaranteed by 
Great Britain and Japan, 

i. 30 

military profession in, de- 
spised, i. 19, 22 
modern education in, i. 146 ; 

ii. 27 
population of, i. 22 

Chin-chiang-kai, i. 256 
Chinese — 
army, i. 30 

banking system, i. 146-148 
boatmen, i. 65, 68, 70, 154 
characteristics, i. 23, 116, 

132-135, 270; ii. 95 
coinage, i. 103-107 
commercial morality, i. 23 
coolies in South Africa, i. 


curiosity, i. 119-121 
etiquette, i. 142-144 
industries, i. 75, 156 ; ii. 

inns, i. 110-112 

linear measurement, i. 167 

press, ii. 26 

punishments, i. 159-162 

rupee, i. 145 
Ching, Prince, ii. 76 
Ching Ho, river, i. 122 ^ 
Ching-tung, i. 255 
Cho Pyong-sik, ii. 241 
Chou, Mr ("Joe"), i. 64, 117, 

131, 248 
Ch'u-hsiung Fu, i. 225 



Ch'ung-k'ing, i. 50, 93-107, 114, 

history of the opening of, i. 


trade of, i. 100 
Churchiil, Right Hon. W. S., 

1. 27— quoted, i. 307 ; ii. 20 
Chu-tsing, i. 184, 185 
Chu tung, i. 250 
Chuzenji, ii. 132, 168 
Clifford, Hugh, quoted, i. 259 
Colquhoun, A. R., ii, 65-67 
Confucius, Analects of, quoted, 

i. 23 

Cooper, T. T., i. 138, 140 ; ii. 
58, 59 

Cotton, Sir Henry, i. 27 

"Cotton Cloth Export Associa- 
tion," the, ii. 308, 312 

Curzon, Lord, quoted, i. 279, 
303 ; ii. 49, 51 

Dalni, ii. 31. See also Tairen 
Dan-sai, i. 317 

Davis, Major, ii. 59 — quoted, i. 

253, 255, 256 
Dihing, river, ii. 64 
D'Orl^ans, Prince Henri, quoted, 

ii. 40, 63 

Douglas, Sir Robert, quoted, i. 
82, 88 

Doumer, Paul, i. 185, 195; ii. 

40-42, 44, 48, 52 
Du Bose, the Rev. H. C, quoted, 

i. 206 
Dufferin, Lord, i. 312 
Dupleix, M., i. 306 
Dymond, Mr, i. 176 

East, aspirations of the, i. 6 
Echigo, province of, ii. 154 
Edamitsu, steel works of, ii. 178 
Egypt, national movement in, 
i. 6 

Elgin, Lord, ii. 50, 113 
Erhlungshan, ii. 294 

Faers, Mr, i. 158 

Fa-ku-men, ii. 329 

Far Eastern Colonisation Com- 
pany, ii. 280 

Favier, Monseigneur, ii. 17 

Formosa, ii. 176 

Forrest, George, i. 139 

Fou T'an rapid, i. 87 

France, in the Far East, i. 194- 
196, 305-317 ; ii. 9, 12, 13, 
70, 71 

Fran9ois, M., i. 194, 195 

Freycinet, M. de, i. 309 

Fu-chou (Ssach'uan), i. 219 

Fuji, Mt., ii. 157-159 

Fukushima-Ovanovsky Conven- 
tion, ii. 285 

Fumizuhi (late Silnui), the, ii. 

Fushun, coal mines of, ii. 197, 

316, 327 
Fytche, General, i. 285 

Gabet, M., i. 137 

Garnier, Francis, i. 258 

Gaya, i. 137 

Geomancy, ii. 19 

Gill, Captain W., quoted, i. 

129, 269 
Gokteik gorge, the, ii. 50 
Gotemba, ii. 158 
Goto, Baron, ii. 319, 322, 323, 


Grey, Rt. Hon. Sir E., quoted, 
i. 219 ; ii. 330, 334 

Haas, M., i. 307 

Hague Peace Conference, ii. 260 

Hailung, i. 237 

Haiphong, ii. 43, 48 

Han, river, i. 47 

Han Yang, i. 50, 52 — steel 

works at, i. 52-54 
Hankow, i. 46-58 — industrial 

activity at, i. 51 
Hannoi, ii. 39 



Harbin, ii. 31 

Hart, Sir Robert, quoted, ii. 6, 

Hasegawa, General, ii. 238, the, ii. 142 
Hayashi, Mr, ii. 235, 237 
Hayashi, Viscount, ii. 262 
Head-hunting tribes, i. 298-300 
Hearn,Lafcadio, ii. 151 — quoted, 
i. 15 

Hideo, Kodama, quoted, ii. 279 
Hideyoshi, ii. 227 
Hiogo, ii. 170 

Hizen (late Jtetvisan), the, ii. 

Hkamti country, ii. 62-64 
Ho Ch'ing, i. 237, 245 
Hokow, i. 194 

Holdioh, Sir T. H., quoted, i. 

78 ; ii. 32 
Holmes, 0. W., quoted, i. 11 
Hondo, ii. 154 
Hong Kong, i. 26 ; ii. 55 
Hosie, Sir Alexander, ii. 59, 

102— quoted, i. 81, 102, 115, 

127, 128, 136, 173, 203; ii. 

61, 104, 111 
Hozumi, Professor Nobushige, 

quoted, ii. 131 
Hsi Liang, Viceroy, i. 142 
Hsia Kuan, i. 233, 241, 247 
Hsieh map, the, i. 300, 301 
Hsin Hsing valley, i. 190 
Hsin Lung T'an, rapid, i. 86 
Hsin-min-tun, ii. 304, 329 
Hsu Tung, ii. 11 
Hsii-ching-cheng, ii. 17 
Huang-lien-pu, i. 249 
Hue, the Abbe, quoted, i. Ill, 


Hukow, i. 46 
Hunghai, i. 227 

Ibuki, the, ii. 143 
Ichang, i. 63, 203 
I-che-hsun, i. 174 

Ichinoi, Mr, ii. 173 
Iki (late Nikolai /.), the, ii. 144 
Ikoma, the, ii. 141, 143 
Ikou, ii. 155 

Il-chin-hoi, the, ii. 258, 259 
India — 

agitation in, i. 5 

French Empire in, i. 306 

labour in, ii. 191 
Indo-China, trade of, with Yiin- 

nan, ii. 56 
Inouye, Marquis, ii. 233 
International cotton mill (Shang- 
hai), ii. 103 
Irrawadi, river, i. 274, 296 
Irrigation works at Kuan Hsien, 

i. 154 
Ishii, Mr, ii. 214 
Italy, in the Far East, ii. 9, 30 
Ito, Prince, ii. 157, 234-238, 

240, 243, 259, 266, 270, 276, 

278, 286 
Iwami (late Orel), the, ii. 144, 


Jack, Dr Logan, quoted, ii. 93 

Japan — 

achievements of, ii. 168 
ambitions of, i. 18, 19 ; ii. 

area of, i. 22 
army of, ii. 132-136 
business guilds in, ii. 179 
commercial rivalry of, ii. 217- 

cotton industry of, ii. 170- 

172, 221-224 
debt of, ii. 204 
education in, i. 12, 13 
emancipation of, i. 5, 16-18 ; 

ii. 121 

factory life in, i. 14, 15 ; ii. 

financial policy of, ii. 136, 


fiscal policy of, ii. 181 



foreign trade of, i. 26 ; ii. 

168, 172, 173, 185 
forests of, ii. 155 
mercantile marine of, ii. 139, 


mortgage laws of, ii. 180 
natural resources of, ii. 184, 

navy of, ii. 142-146 
paternal Government of, ii. 

population of, i. 22 
socialism in, ii. 188, 192 
water-power in, ii. 171, 174, 

Japanese — 

activity at Hankow, i. 56, 57 
bounties, ii. 177, 198, 307 
commercial competition, i. 


commercial morality, i. 20 ; 

ii. 204, 207-216, 302 
courts, ii. 211, 274 
disregard for death, ii. 127- 


industrial activity, ii. 170, 

173-176, 178 
inns, ii. 152 
labour, ii. 186-195 
losses in the war, ii. 338 
martial qualities, i. 23 ; ii. 

patriotism, ii. 127 
secret agreement re railways 
in Manchuria, ii. 330, 335 
Jardine, Messrs, ii. 103 
Johnson, Dr Samuel, quoted, i. 

Kagoshima, ii. 26 

Kamakura, the Buddha of, ii. 

157, 160-163 
Kanegafuchi Company, ii. 201 
Kang Yu Wei, ii. 25 
Kangai, i. 268 
Kan-lan-chan, i. 264 


Kansu, ii. 117 

Kanzaki (late Kazan), the, ii. 

Karuizawa, ii. 54, 155 
Kashima, the, ii. 143 
Katha, ii. 66 
Katori, the, ii. 143 
Katsura, Marquis, ii. 137, 280 
Kawasaki dockyard, ii. 188 
Kegon-no-taki, waterfall, ii. 132 
Keng-ma, i. 255 
Kent, Messrs, ii. 175 
Kent, P. H., quoted, ii. 68 
Kiang Cheng, i. 295, 310, 311, 

Kiang Hung, i. 293-295, 310 ; 

ii. 65, 67 
Kiang Yin, i. 45 
Kiau Chau, ii. 10, 11 
Kiddle, Major W., i. 299 
Kikwan, ii. 294 
Kinshu Maru, the, ii. 128 
Kipling, Rudyard, quoted, ii. 


Kiukiang, i. 46 
Kobe, ii. 170, 172, 174, 188 
Kodama, General, ii. 135 
Koh-kut, i. 317 
Kondratchenko, ii. 294 
Kong Ling, rapid, i. 86 
Korea — 

army of disbanded, ii. 267 
colonisation of, by Japan, ii. 

convention concerning, of No- 
vember 1905, ii. 234, 239, 
246, 253 
convention concerning, of July 

24, 1907, ii. 266, 283 
cotton cultivation in, ii. 177 
criticisms of Japan in, ii. 273- 

high - handed procedure of 

Japan in, ii. 276 
marriage of Crown Prince of, 

ii. 244 




passing of, ii. 226-284 

population of, ii. 279 

protocol concerning, of Febru- 
ary 23, 1904, ii. 231, 249 

protocol concerning, of August 
22, 1904, ii. 232, 251 

reform in, ii. 244, 268 

Sino - Japanese and Russo- 
Japanese wars fought over, 
ii. 123, 229, 231 
Korean students in Japan, ii. 


Kotsuke, province of, ii. 154 
Kow-loon, ii. 9 
Kratt, i. 317 

Kuadza (passenger junk on the 
Yang-tsze) described, i. 65 

Kuan Hsien, i. 154 

Kuang-si (in Yun-nan), i. 237, 

Kuang-t'ung Hsien, i. 225 
K'uei Fu, i. 72 
Kulika, river, i. 272 
Kuling, the, i. 94, 95 
Kumki, ii. 64 
Kung Lang, i. 256 
Kung-long Ferry, i. 227 ; ii. 40, 

Kuo-chiu-ch'ang, tin mines of, 

i. 229 ; ii. 106 
Kurama, the, ii. 143 
Kur6, ii. 139-141, 146, 168 
Kuroki, General, ii. 134 
Kwanchengtze, ii. 321 
Kwong-chow-wan, ii. 9, 12, 13 
Kyoto, ii. 168 
Kyushu, ii. 168, 195 

Ladd, Professor, quoted, ii. 258, 

La'hu, the, i. 299 
Lai-tou-p'o, i. 183 
Lansdowne, Lord, i. 314 
Lao-kai, i. 190; ii. 39, 46 
Laos, ii. 57 

Lao-wa-t'an, i. 164, 165 

Lao-ya-kuan, i. 221 

Lashio, i. 254 ; ii. 49 

Lechuen, ascent of Yang-tsze bv, 

i. 83, 86 
Lem, the, i. 299 
Lemling, Cape, i. 317 
Lewis, the Rev. E., i. 201 
Lhassa, i. 138 
Li, Mr, i. 53 
Li Shao Yen, i. 294 
Li Tzu-ch'eng, i. 113 
Liao, river, ii. 304, 329 
Li-chiang, i. 237, 246 
Likin, ii. 113-115 
Lilley, Mr, i. 250, 257 
Lin-an, i. 230, 241 
Litang, i. 139 

Little, Archibald, ii. 107, 117 

—quoted, i. 44, 70, 83, 154 
" Little Orphan," the, i. 46 
Litton, Consul, i. 300 — quoted, 

i. 190, 245 
Lofan, i. 212 
Lolos, the, i. 265 

Loti-shui (destination tax), ii. 

Lu Ho, i. 122 

Luang Prabang, i. 259, 312 

Lu-feng Hsien, i. 224 

Lil-ho, i. 226 

Lu-kou, ii. 64 

Lung Chang Hsien, i. 118 

Lung Hui Chen, i. 130 

Lung-chang-kai, i. 269 

Lyttelton, the Right Hon. A., 

ii. 330 

Ma Hsiu (Ma Ju Lung), i. 238, 

Ma Ju Lung. See Ma Hsiu 
Ma Min Kuang, i. 241 
Ma Te Sing, i. 238, 239 
Macauley, Mr, i. 291 
Mackay treaty, i. 55, 88, 89 
MacMahon, General A. R., 
quoted, i. 290 



Ma-fang Chiao, i. 1 1 2 
Main, Dr, quoted, i. 216 
Maizaru, ii. 147 

Makigumo (late Vosadnik), the, 
ii. 144 

Malay Peninsula, i. 315, 316 
Manchuria, ii. 9, 24, 285-340 
Japanese in, ii. 301-303 
Japanese trade in, ii. 305-313 
open door in, ii. 309, 333, 

Mandalay, i. 274 ; ii. 40, 48, 66 
Manifold, Colonel, quoted, ii. 97 
Manshien, i. 271 
Manshu (late Manchuria), the, 

ii. 144 
Man-tztt, the, i. 155 
Manwyne, i. 269, 271 
Marco Polo, quoted, i. 9, 76, 

110, 136, 263, 299 ; ii. 300 
Margary, Augustus Raymond, 

i. 93, 173, 225, 281-283; ii. 


Martin, Dr, quoted, i. 41, 170 
Masuda, T., ii. 155, 197, 215 
Matsuoka, Mr, ii. 205 — speech 

by, ii. 213 
Matsui/e (late Sungari), the, ii. 


Matung, i. 46 

Maulmein, ii. 65 

Maymyo, ii. 49 

Maze, Mr, i. 267 

Mekong, river, i. 255, 256, 258, 

259, 294, 295, 298, 302, 311, 

315 ; ii. 63, 64 
Menam, river, i. 315, 316 
Meng-hua Ting, i. 255 
Meng-tztt, i. 190, 194, 245 ; ii. 


Meou Kou, rapid, i, 87 
Meyers, firm of, ii. 210 
Min Yong Choi, Korean Minister 

of State, ii. 240 
Min Yonghwan, ii. 242 
Ming dynasty, ii. 300 

Ming Li-sung, i. 230, 231 
Mishima (late Seniavin), the, ii. 

Mitsui Company, ii. 197, 306, 

308, 309 
Mitu plain, i. 227 
Miyajima, ii. 168 
Miye Company, ii. 170 
Mixed Court riot, i. 38 
Mohammed, militant creed of, 

i. 8 

Mohammedan rebellion in Yiin- 

nan, i. 235-243, 284 
Moji, ii. 175, 196 
Momein, see T'eng YUeh 
Mong-hsung, i. 255 
Morgan crucible, the, ii. 210 
Morphia, as a substitute for 

opium, i. 215-217 
Morrison, Dr, quoted, i. 104, 

105, 175, 242, 292, 308 ; ii. 

26, 210, 323 
Mukden, ii. 286, 298-302 
Munglem, i. 293, 295 
Myohaung, ii. 48 

Na-ch'i, i. 185 
Nagasaki, ii. 168 
Nag-chu, river, ii. 75 
Nagoya, ii. 170, 196, 218 
Nam Hsung, river, i. 255, 300 
Nam Ting, river, i. 255, 300 
Nam Wan, river, i. 295 
Nam-ti valley, ii. 44, 46 
Nan Chiao Ho, i. 256 
Nanking, i. 45 
Nan-kwan Ling, ii. 296 
Nanshan, ii. 294 
Nantien, i. 267 

"National Righteousness, "quot- 
ed, i. 214 

Near East, contrasted with the 
Far East, i. 7 et seq. 

New Glorious Rapid, the, i. 74 

New Year, Chinese, i. 243, 260, 
262, 270 



Nikko, i. 5 ; ii. 154, 168, 176 

Ning-yuan Fu, ii. 75 

Nippon Yusen Kwaisha, the, 

ii. 138 
Nisbet, J., quoted, ii. 73 
Nitobe, Professor Inazo, quoted, 

i. 22 

Niu-chwang, ii. 31, 198, 321, 

Niu-fu-tu, i. 121 
Niu-lan, river, i. 172-174 
Nmai, Hka, river, i. 303 
Nogi, General, ii. 134 
Norman, Sir Henry, quoted, i. 

North- East Frontier, the, i. 279- 

317 ; ii. 3 
North- West Frontier, the, i. 

280 ; ii. 3 

O'Conor, Mr (afterwards Sir N.), 
i. 291 

Okinoshima (late Apraxine), ii. 

Oku, General, ii. 134 
Okuma, Count, ii. 125, 181 
Om, Lady, ii. 234, 236 
Omei, Mt., i. 156 
Opium poppy, the, i. 73, 102, 

Opium question, the, i. 197-220 

Orel, the. See hoami. 

Osaka, i. 122 ; ii. 168, 170, 173, 

188, 213 
Oyama, Marquis, ii. 134 

Pai-shih-yi, i. 110 

Pak Che Soon, Korean Minister 
of State, ii. 240, 258 

Pansang Nalawt, i. 300 

Panthay rebellion. See Mo- 
hammedan rebellion 

Patkai mountains, ii. 61-63 

Peal, S. E., quoted, ii. 59, 60 

Peel, Sir Robert, quoted, i. 

Peking, i. 27 — university at, i, 
49 — legation quarter in, ii, 22 

Pennsylvania Steel Company, ii. 

Persia, reform movement in, i. 5 

Peter, i. 64, 119 

Philippine Commission on opium- 
smoking, i. 200 

Pichi Kuan, i. 221 

Ping Shan, coal mines at, i. 54 

Pioneer, ascent of the Yang-tsze 
by, i. 83 

Pitsie, i. 185 

Plant, Captain, quoted, i. 82, 85 
Port Arthur, ii. 11, 291-295 
Portsmouth, Treaty of, ii. 166, 

Poyang lake, i. 46 
Prome, ii. 65 
Pu P'eng, i. 226 
Pupiao, i. 260, 262 

Railway — 

Antung-Mukden, ii. 317 
Bhamo-Tali Fu, i. 228, 251- 

254, 258 ; ii. 35, 67-89 
Canton-Hankow, ii. 332 
Canton-Kowloon, ii. 78, 80, 

81, 85, 333 
Canton-Samshui, ii. 86 
Changchun-Kirin, ii. 319 
Ch'engtu-Hankow, i. 140, 149 ; 

ii. 34, 74 
Fa-ku-men, ii. 329-340 
Fusan-Seoul, ii. 226 
Hangchow-Ningpo, ii. 78, 83 
Hannoi-Laokai-Yiin-nan Fu, 

i. 189, 229 ; ii. 39-48, 55- 

57, 70, 74 
Hsin - min - tun - Mukden, ii. 

319, 322 
Imperial North China, ii. 85 
Kung - long - Na-ch'i, i. 227, 

253-257 ; ii. 51-55, 74 
Mandalay-Lashio, ii. 48-50 
Mu Valley, ii. 66 



Peking-Hankow, i. 49 
Shanghai-Nanking, i. 45 ; ii. 

Shin-Yetsu, ii. 53 
Sittang Valley, ii. 65 
South Manchurian, ii. 297, 

322-324, 334 
Tali Fu-Ning-yuan Fu, ii. 75 
Tali Fu-Yiin-nan Fu, i. 228 ; 

ii. 71 

Tientsin-Pukow, ii. 78-80, 85 
Yiin-nan-Sstich'uan, i. 184- 
186, 228 ; ii. 35 
Rangoon, i. 274, 284, 296 ; ii. 

Red river, i. 255, 256, 264 
R^musat, Abel, quoted, i. 148 
Rhododendron trees, in Yiin- 

nan, i. 248 
Richthofen, Baron F. von, 

quoted, i. 42 ; ii. 106 
Rooemah, ii. 59 

Roosevelt, President, quoted, 

i. 42 

Rosebery, Lord, i. 290-293, 300, 
311, 312 

Royal Brush Company, ii. 189 

Russo-Japanese Railway Con- 
vention, ii. 320 

Ryder, Captain, quoted, i. 256, 

ii. 62 

Sadiya, ii. 58, 62, 63 
Sagami (late Perewiet), the, ii. 

Sagami, province of, ii. 157 
St Martin, Vivien, quoted, i. 259 
Saionji, Marquis, ii. 136 
Salisbury, Marquis of, i. 289, 

Salt wells, in Ssfich'uan, i. 124- 

129 ; ii. 105 
Salwin, river, i. 254, 263, 298, 

302 ; ii. 63-65 
Samurai, the, i. 22 
Sanmun, ii. 9 

Saris, Captain John, quoted, ii. 

Satsuki (late Viedovi), the, ii. 144 
Satsuma, the, ii. 141, 143 
Savin, Dr, i. 169 
Scott, Sir George, i. 301 — 

quoted, i. 254, 255 
"Scott's line," i. 301 
Sedan-chair, necessity of having 

one, i. 101 
Seiyu-kai, the, ii. 136, 278, 


Seoul, ii. 227, 275 
*' Seoul Press," quoted, ii. 271 
Seppiikii, ii. 128 
Seymour, Admiral, ii. 22 
Sha-chiao, i. 226 
Shanghai, i. 35 - 39, 280 ; ii. 

constitution of, i. 35 

foreign population of, i. 36 

prosperity of, i. 36 

trade of, i. 38 
Shang-kuan, i. 227 
Shan-hai-kuan, ii. 322 
Shans, the, i. 268 
Sharp, Consul Hunter, quoted, 

ii. 180 
She-tz'u, i. 225 

Shibusawa, Baron, quoted, i. 
18, 20 

Shiga, Mr, quoted, ii. 280 
Shimonoseki, ii. 226 — Treaty 

of, i. 96 
Shimotsuke, province of, ii. 154 
Shinano, province of, ii. 155 
Shirinami (late Gaidamak), the, 

ii. 144 
Shuang-cha Ho, i. 249 
Shui Chai, i. 260 
Shun-ning, i. 253, 296 
Shun-pi, river, i. 249 
Shweli, river, i. 264 
Siam, i. 310-317 
Siem-Reap, i. 316 
Silk, in Ssilch'uan, i. 137, 156 



Sinan Hka, ii. 64 

Sino-Japanese Railway Agree- 
ment, ii, 343 

Sisophon, i. 317 

Sladen Mission, the, i. 239, 285, 

Song Pyong-chun, Korean Min- 
ister of State, ii. 259 

South Manchurian Railway 
Company, ii. 314-321, 324- 

Soya (late Varyag), the, ii. 144 
Ssilch'uan, i. 43 

cost of transport in, 110 
exports of, ii. 103-107 
minerals of, ii. 106 
population of, i. 113 
roads of, i. 108 ; ii. 32, 109 
Ssu-mao, i. 296 
Siian Wei, i. 183, 185 
Su-chow creek, the, i. 280 
Sui Fu, i. 158-162, 185-190, 

Suo (late Pobieda), the, ii. 144 
Suruga, province of, ii. 157 
Sutherland, A. B., i. 299 
Suzuya (late Novik), the, ii. 144 

Ta Yeh, iron at, i. 42, 54 
Ta-chien-lu, i. 145; ii. 61, 62 
Taijon, ii. 279 
T'ai-p*ing-p'u, i. 248 
Tairen (Dalni), ii. 286, 290, 304, 

321, 329 
Taku forts, ii. 21 
Ta-kuan, river, i. 164, 165, 168 
Ta-kuan Ting, i. 168 
Tall Fu, i. 190, 235, 243-246 ; 

ii. 66 
Talienwan, ii. 11 
Tango (late Poltava), the, ii. 144 
Tao Kwang, Emperor, i. 211 
Tao Yuan, i. 172 
Ta-pan Chiao, i. 183 
Ta-ping, river, i. 268, 272, 289 
Ta-sung-sii, i. 118 

Ta T'ou Wu, i. 241 
Ta-wan-tzu, i. 168 
Te Liang, ii. 31 

T*eng Yileh (Momein), i. 239, 
267, 286, 296 

Terauchi, General, ii. 315 

Theebaw, King, i. 308 

exclusive policy of, ii. 59 
rising on frontier of, i. 139 ; 
ii. 58 

Tientsin, i. 47 ; ii. 117 
siege of, ii. 22, 23 
Treaty of, i. 94 ; ii. 112 

Ting, Viceroy, i. 192 

Titsihar, ii. 329 

To Wen Hsiu, i. 238, 239, 

Togo, Admiral, ii. 130 
Tokyo, i. 5 ; ii. 150, 168, 170, 

military review at, ii. 132- 

unimpressiveness of, ii. 125 
Tong Shao-yi, i. 202 ; ii. 31 
Tongking, cotton mills of, ii. 

56, 57, 74, 103 
Toungoo, ii. 66 
Tou-sha-kuan, i. 168 
Trackers, on the Yang-tsze, i. 


Trade-marks — 

convention concerning, ii. 212 
pirated by Japanese, ii. 208, 
210, 211 

Transit passes, ii. 112 

♦'Tremblingly obey," i. 27 

Ts'en, Yii-ying, i. 189 

Tseng, Marquis, i. 291 

Tsugaru (late Palladia), the, ii. 

Tsukuha, the, ii. 141, 143 
Tsushima, ii. 147 
Tung Fei Lung, i. 241 
Tung Fu-hsiang, ii. 9 
Tung-ch'uan Fu, i. 175, 176 



Turkey, reform movement in, 

i. 6 

Tzfi Chou, i. 130 

Tzu Hsi, Dowager Empress of 

China, ii. 12, 17 
Tzu-liu-ching, i. 122-129; ii. 


Vale, Rev. J., i. 154 
Vaterland, ascent of Yang-tsze 

by, i. 84 
Vladivostock, ii. 324 

Wa, the, i. 298, 300 
Wakamatsu, ii. 168, 219 
Walsham, Sir John, i. 94 
Wan Hsien, i. 74 ; ii. 93 
Wang San-huai, i. 1 1 3 
Washi, Sergeant-Major, ii. 128 
Watarase, river, ii. 154 
Watt- Jones, Captain, i. 256 
Weale, Putnam, quoted, i. 43 
Wei-hai-wei, ii. 9, 12 
Wei-ning Chou, i. 183-185 
Wei-yuan Chiang, i. 256 
Whang-poo river, i. 36 
White wax, i. 156 ; ii. 104 
Widgeon, H.M.S,, ascent of 

Yang-tsze by, i. 84 
Wilkinson, Consul - General, i. 


Wolf's Hill, ii. 294 
Wu-chai, i. 169 
Wuchang, i. 50, 72, 75 
Wuhu, i. 46, 212 
Wu-sung, i. 281 

Ya, river, i. 155 

Ya Lung, river, ii. 75 

Ya-chou, ii. 61 

Yakub Beg, i. 287 

YamahiJco (late Reshitelni)^ the, 

ii. 144 
Yamanobe, Mr, ii. 308 
Yang-chia-chang, i. 130 
Yang-chia-kai, i. 131 

Yang-kai, i. 183 
Yang-lin, i. 183 
Yang-pi, i. 247 

Yang-sha-pu (native cloth), i. 

190, 191 
Yang-tsze, river, i. 43 

freights on, i. 80 

gorges of, i. 67, 87 

problem of the navigation of, 
i. 78-92 

rapids of, i. 69, 86, 87 

rise of, i. 89 

shallows in, i. 59 

steam navigation on, i. 74, 
83, 84 

steamers on, i. 47 

volume of, i. 44 
Yashima, the, ii. 142 
Yatse Ho, i. 87, 88 
Yeh fan, rapid, i. 69, 87 
Yellow river, bridge over, i. 


Yentai, coal mines of, ii. 316, 

Yerkalo, ii. 62 

Yi Hy-eung, Emperor of Korea, 
ii. 263 

Yi Wan-yong, Korean Minister 
of State, ii. 238, 239, 259 

Yokkaichi, ii. 170 

Yokogawa, ii. 53 

Yokohama, ii. 149 

Yokosuka, ii. 141, 146, 163, 

Young, E. C, quoted, ii. 63, 

Younghusband Mission, the, i. 

Yuan Shikai, ii. 30, 77 
Yuan-Ch'ang, ii. 17 
Yueh-kai, the, i. 244 
Yule, Sir Henry, quoted, i. 306 
Yu.n Chi-ho, Korean Minister of 

State, ii. 242 
Ylin Chou, i. 256 
Yung Chang Hsien, i. 115 



Yung-ch'ang, i. 253, 260 
Yung-lu, ii. 9 
Yung-ning, i. 185 
Yung-ping, river, i. 249 
Yiin-nan province, i. 43 

English in, i. 193 

exports of, i. 246 ; ii. 103- 

French in, i. 194-196 
minerals of, i. 228-232; ii. 

roads of, i. 221-224 

soldiers of, i. 264-266 

trade of, ii. 56 
Yiin-nan Company, the, i. 185, 

227, 252 ; ii. 35, 53 
Yiin-nan Fu, i. 188-196 
Yiin-nan Hsien, i. 227 
Yiin-nan Syndicate, the, i. 229- 


Yvin-nan-yi, i. 226 

Zahn, Dr Friederich, ii. 136 
Zimm(5, ii. 65 





DS Zetland, La\^Jrence John 

7X0 LuTTiley Dundas ^ 
7^ A wandering student m 

V.2 the Far East